Ellington Credit Stock

Ellington Credit ROCE 2024

Ellington Credit ROCE

-0.06

Ticker

EARN

ISIN

US2885781078

WKN

A1T940

In 2024, Ellington Credit's return on capital employed (ROCE) was -0.06, a -145.15% increase from the 0.13 ROCE in the previous year.

Ellington Credit Aktienanalyse

What does Ellington Credit do?

Ellington Residential Mortgage REIT is a publicly traded real estate investment company specializing in investing in mortgage securities. The company was founded in 2012 and is headquartered in Old Greenwich, Connecticut. It was founded by Laurence Penn, a former mortgage investor and CEO of Ellington Financial, one of the leading alternative asset management firms. The business model of Ellington Residential Mortgage REIT is based on the purchase and management of MBS (Mortgage-Backed Securities) and RMBS (Residential Mortgage-Backed Securities) issued by government agencies such as Fannie Mae and Freddie Mac. The company invests in a wide range of mortgage products, including fixed-rate, variable-rate, and hybrid mortgages, to diversify investment risk. Ellington Residential Mortgage REIT is divided into various business segments, including the acquisition and management of MBS and RMBS portfolios. The company's investments focus on prime mortgage securities issued by the national credit agency, which are government-backed and securitized. The company also holds a portfolio of loans that include fixed-rate or variable-rate loans tied to an interest rate index, which can be used as collateral for MBS and RMBS investments. An important aspect of Ellington Residential Mortgage REIT's business model is active risk management. The company constantly monitors mortgage market prices and adjusts its portfolio to reduce risks and maximize return potential. It also uses derivatives, particularly swaps and options, to perform portfolio hedging. Ellington Residential Mortgage REIT also offers a wide range of mortgage products, including first-lien mortgages, second-lien mortgages, hybrid ARMs, interest-only mortgages, among others. The company also provides mortgage-based loans, such as HELOCs (Home Equity Line of Credit) and home equity loans. The company relies on two main strategies. The first is generating income through regular dividend distributions to its shareholders. The company aims for a high dividend yield to attract investors. The second strategy is long-term investment in mortgage securities to achieve high capital returns. Ellington Residential Mortgage REIT has shown strong performance in recent years. The company has achieved an average dividend yield of around 10 percent in the past three years and has distributed a total of $27.9 million in dividends during that time. Assuming that the market environment remains stable in the future, the company also aims to continue pursuing high dividend yields. Overall, through its strategic focus on the mortgage market, Ellington Residential Mortgage REIT has created a wide range of investment opportunities. With its strong determination to actively manage the portfolio, the company is well positioned to achieve attractive returns in different market conditions. The investment firm has become a major player in the industry, with investors trusting in its high-quality mortgage products and solid financial strategy. Ellington Credit ist eines der beliebtesten Unternehmen auf Eulerpool.com.

ROCE Details

Unraveling Ellington Credit's Return on Capital Employed (ROCE)

Ellington Credit's Return on Capital Employed (ROCE) is a financial metric that measures the company's profitability and efficiency with respect to the capital employed. It is calculated by dividing earnings before interest and tax (EBIT) by the employed capital. A higher ROCE indicates that the company is effectively utilizing its capital to generate profits.

Year-to-Year Comparison

Analyzing Ellington Credit's ROCE annually provides valuable insights into its efficiency in using its capital to generate profits. An increasing ROCE indicates improved profitability and operational efficiency, whereas a decrease might signal potential issues in capital utilization or business operations.

Impact on Investments

Ellington Credit's ROCE is a critical factor for investors and analysts for evaluating the company’s efficiency and profitability. A higher ROCE can make the company an attractive investment, as it often signifies that the firm is generating adequate profits from its employed capital.

Interpreting ROCE Fluctuations

Changes in Ellington Credit’s ROCE are attributed to variations in EBIT or the capital employed. These fluctuations offer insights into the company’s operational efficiency, financial performance, and strategic financial management, assisting investors in making informed investment decisions.

Frequently Asked Questions about Ellington Credit stock

What is the ROCE (Return on Capital Employed) of Ellington Credit this year?

The ROCE of Ellington Credit is -0.06 undefined this year.

How has the ROCE (Return on Capital Employed) of Ellington Credit developed compared to the previous year?

The ROCE of Ellington Credit has increased by -145.15% decreased compared to the previous year.

What does a high ROCE (Return on Capital Employed) mean for investors of Ellington Credit?

A high Return on Capital Employed (ROCE) indicates that Ellington Credit has efficient capital utilization and is able to achieve a higher return on its invested capital. This can be appealing to investors.

What does a low ROCE (Return on Capital Employed) mean for investors of Ellington Credit?

A low ROCE (Return on Capital Employed) can indicate that Ellington Credit has an inefficient utilization of its capital and may have difficulty in achieving a satisfactory return on its invested capital. This can be uncertain or unattractive for investors.

How does an increase in ROCE from Ellington Credit impact the company?

An increase in the ROCE of Ellington Credit can be an indicator of improved company efficiency and show that it is achieving higher profits in relation to its investments.

How does a reduction in the ROCE of Ellington Credit affect the company?

A decrease in ROCE of Ellington Credit can be an indicator of deteriorated efficiency of the company, indicating that it is generating lower profits in relation to its investments.

What are some factors that can influence the ROCE of Ellington Credit?

Some factors that can affect Ellington Credit's ROCE include efficiency in managing assets, profitability of investments, cost efficiency, and market conditions.

Why is the ROCE of Ellington Credit so important for investors?

The ROCE of Ellington Credit is important for investors as it is an indicator of the company's efficiency and shows how successful the company is in relation to its investments. A high ROCE can indicate strong financial performance of the company.

What strategic measures can Ellington Credit take to improve the ROCE?

To improve the ROCE, Ellington Credit can take measures such as increasing efficiency in asset management, optimizing investments, cost savings, and exploring new revenue sources. It is important for the company to conduct a thorough review of its operations to determine the best strategic actions to improve the ROCE.

How much dividend does Ellington Credit pay?

Over the past 12 months, Ellington Credit paid a dividend of 0.96 USD . This corresponds to a dividend yield of about 13.66 %. For the coming 12 months, Ellington Credit is expected to pay a dividend of 0.92 USD.

What is the dividend yield of Ellington Credit?

The current dividend yield of Ellington Credit is 13.66 %.

When does Ellington Credit pay dividends?

Ellington Credit pays a quarterly dividend. This is distributed in the months of August, September, October, November.

How secure is the dividend of Ellington Credit?

Ellington Credit paid dividends every year for the past 14 years.

What is the dividend of Ellington Credit?

For the upcoming 12 months, dividends amounting to 0.92 USD are expected. This corresponds to a dividend yield of 13.03 %.

In which sector is Ellington Credit located?

Ellington Credit is assigned to the 'Finance' sector.

Wann musste ich die Aktien von Ellington Credit kaufen, um die vorherige Dividende zu erhalten?

To receive the latest dividend of Ellington Credit from 11/25/2024 amounting to 0.08 USD, you needed to have the stock in your portfolio before the ex-date on 10/31/2024.

When did Ellington Credit pay the last dividend?

The last dividend was paid out on 11/25/2024.

What was the dividend of Ellington Credit in the year 2023?

In the year 2023, Ellington Credit distributed 1.04 USD as dividends.

In which currency does Ellington Credit pay out the dividend?

The dividends of Ellington Credit are distributed in USD.

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Andere Kennzahlen von Ellington Credit

Our stock analysis for Ellington Credit Revenue stock includes important financial indicators such as revenue, profit, P/E ratio, P/S ratio, EBIT, as well as information on dividends. We also assess aspects such as stocks, market capitalization, debt, equity, and liabilities of Ellington Credit Revenue. If you are looking for more detailed information on these topics, we offer comprehensive analyses on our subpages.