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Amphenol (Amphenol) ROE %

: 25.40% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Amphenol's annualized net income for the quarter that ended in Dec. 2023 was $2,058 Mil. Amphenol's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $8,102 Mil. Therefore, Amphenol's annualized ROE % for the quarter that ended in Dec. 2023 was 25.40%.

The historical rank and industry rank for Amphenol's ROE % or its related term are showing as below:

APH' s ROE % Range Over the Past 10 Years
Min: 16.97   Med: 24.98   Max: 30.1
Current: 25.34

During the past 13 years, Amphenol's highest ROE % was 30.10%. The lowest was 16.97%. And the median was 24.98%.

APH's ROE % is ranked better than
94.9% of 2410 companies
in the Hardware industry
Industry Median: 4.72 vs APH: 25.34

Amphenol ROE % Historical Data

The historical data trend for Amphenol's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Amphenol Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.03 24.27 27.22 28.57 25.10

Amphenol Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.88 24.53 24.86 26.75 25.40

Competitive Comparison

For the Electronic Components subindustry, Amphenol's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Amphenol ROE % Distribution

For the Hardware industry and Technology sector, Amphenol's ROE % distribution charts can be found below:

* The bar in red indicates where Amphenol's ROE % falls into.



Amphenol ROE % Calculation

Amphenol's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=1928/( (7015.6+8346.5)/ 2 )
=1928/7681.05
=25.10 %

Amphenol's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=2057.6/( (7856.8+8346.5)/ 2 )
=2057.6/8101.65
=25.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Amphenol  (NYSE:APH) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=2057.6/8101.65
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2057.6 / 13310)*(13310 / 16142.7)*(16142.7 / 8101.65)
=Net Margin %*Asset Turnover*Equity Multiplier
=15.46 %*0.8245*1.9925
=ROA %*Equity Multiplier
=12.75 %*1.9925
=25.40 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=2057.6/8101.65
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2057.6 / 2661.6) * (2661.6 / 2824.8) * (2824.8 / 13310) * (13310 / 16142.7) * (16142.7 / 8101.65)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7731 * 0.9422 * 21.22 % * 0.8245 * 1.9925
=25.40 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Amphenol ROE % Related Terms

Thank you for viewing the detailed overview of Amphenol's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Amphenol (Amphenol) Business Description

Traded in Other Exchanges
Address
358 Hall Avenue, Wallingford, CT, USA, 06492
Amphenol is a global supplier of connectors, sensors, and interconnect systems. Amphenol holds the second-largest connector market share globally and sells into the end markets of automotive, broadband, commercial air, industrial, IT and data communications, military, mobile devices, and mobile networks. Amphenol is diversified geographically, with operations in 40 countries.
Executives
Robert Livingston director C/O DOVER CORPORATION, 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515
Jean-luc Gavelle officer: Senior Vice President LE GUA, 3, LESCOUT I0 81110
William J Doherty officer: Vice President 34 PIER 7, CHARLESTOWN MA 02129
Lance E D'amico officer: Sr. VP, Secretary & GenCounsel C/O UTI, SERVICES, INC., 19500 RANCHO WAY, SUITE 116, RANCHO DOMINGUEZ CA 90220
Richard Adam Norwitt officer: VP & GROUP GM, RF & MICRO PROD
Craig A Lampo officer: VP & CONTROLLER 163 STAGECOACH ROAD, DURHAM CT 06422
Luc Walter officer: SR VP & GGM EUR MIL & AERO OPS
Prahlad R. Singh director 940 WINTER STREET, PERKINELMER, WALTHAM MA 024511457
David M Silverman officer: Vice President, Human Resource 20 CRANBROOK ROAD, WEST HARTFORD CT 06117
Martin Booker officer: VP & Grp General Mgr, AIPG 531 GIFFORD HILL ROAD, ONEONTA NY 13820
Nancy A. Altobello director 520 MADISON AVENUE, NEW YORK NY 10022
Richard Gu officer: VP,Grp GM Mobile Consumer Prod 9208 PAULESHIN CRESCENT, RICHMOND A1 V7E 6P2
Zachary W Raley officer: VP GGM WW RF & MICRO PROD 17 POND MEADOW ROAD, KILLINGWORTH CT 06419
Dieter Ehrmanntraut officer: VP & Grp GM, Automotive Prod GOETHESTRASSE 17, BERGHEIM 2M 50126
Rita S. Lane director 1303 E. ALGONQUIN ROAD, SCHAUMBURG IL 60196