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Chicago Bridge & Iron Co NV (Chicago Bridge & Iron Co NV) ROE % : 167.28% (As of Mar. 2018)


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What is Chicago Bridge & Iron Co NV ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Chicago Bridge & Iron Co NV's annualized net income for the quarter that ended in Mar. 2018 was $176 Mil. Chicago Bridge & Iron Co NV's average Total Stockholders Equity over the quarter that ended in Mar. 2018 was $105 Mil. Therefore, Chicago Bridge & Iron Co NV's annualized ROE % for the quarter that ended in Mar. 2018 was 167.28%.

The historical rank and industry rank for Chicago Bridge & Iron Co NV's ROE % or its related term are showing as below:

CBI's ROE % is not ranked *
in the Construction industry.
Industry Median: 6.71
* Ranked among companies with meaningful ROE % only.

Chicago Bridge & Iron Co NV ROE % Historical Data

The historical data trend for Chicago Bridge & Iron Co NV'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.

Chicago Bridge & Iron Co NV ROE % Chart

Chicago Bridge & Iron Co NV Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.47 21.39 -21.23 -18.27 -196.38

Chicago Bridge & Iron Co NV Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ROE % Get a 7-Day Free Trial 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 6.86 -134.38 3.67 -720.36 167.28

Competitive Comparison of Chicago Bridge & Iron Co NV's ROE %

For the Engineering & Construction subindustry, Chicago Bridge & Iron Co NV'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.


Chicago Bridge & Iron Co NV's ROE % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Chicago Bridge & Iron Co NV's ROE % distribution charts can be found below:

* The bar in red indicates where Chicago Bridge & Iron Co NV's ROE % falls into.



Chicago Bridge & Iron Co NV ROE % Calculation

Chicago Bridge & Iron Co NV's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=-1458.193/( (1413.538+71.57)/ 2 )
=-1458.193/742.554
=-196.38 %

Chicago Bridge & Iron Co NV's annualized ROE % for the quarter that ended in Mar. 2018 is calculated as

ROE %=Net Income (Q: Mar. 2018 )/( (Total Stockholders Equity (Q: Dec. 2017 )+Total Stockholders Equity (Q: Mar. 2018 ))/ count )
=175.576/( (71.57+138.346)/ 2 )
=175.576/104.958
=167.28 %

* 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 (Mar. 2018) net income data. ROE % is displayed in the 30-year financial page.


Chicago Bridge & Iron Co NV  (NYSE:CBI) 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: Mar. 2018 )
=Net Income/Total Stockholders Equity
=175.576/104.958
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(175.576 / 6982.476)*(6982.476 / 5996.0775)*(5996.0775 / 104.958)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.51 %*1.1645*57.1284
=ROA %*Equity Multiplier
=2.92 %*57.1284
=167.28 %

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: Mar. 2018 )
=Net Income/Total Stockholders Equity
=175.576/104.958
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (175.576 / 223.288) * (223.288 / 413.452) * (413.452 / 6982.476) * (6982.476 / 5996.0775) * (5996.0775 / 104.958)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7863 * 0.5401 * 5.92 % * 1.1645 * 57.1284
=167.28 %

Note: The net income data used here is four times the quarterly (Mar. 2018) net income data. The Revenue data used here is four times the quarterly (Mar. 2018) 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.


Chicago Bridge & Iron Co NV ROE % Related Terms

Thank you for viewing the detailed overview of Chicago Bridge & Iron Co NV's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Chicago Bridge & Iron Co NV (Chicago Bridge & Iron Co NV) Business Description

Traded in Other Exchanges
N/A
Address
Founded in 1889, Chicago Bridge & Iron provides a wide range of services, including conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management, and environmental services, to customers in the global energy infrastructure market. It also provides diversified government services. It generated 2017 adjusted revenue and adjusted EBIT of $5.8 billion and a loss of $180 million, respectively. CB&I employs 34,000 at active projects in more than 70 countries.
Executives
James H Miller director C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067
W Craig Kissel director
Alexander Forbes I J director 10560 DR. MARTIN LUTHER KING JR. ST N, ST. PETERSBURG FL 33716-3718
Deborah M Fretz director 1801 MARKET STREET, PHILADELPHIA PA 19103
L Richard Flury director 2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042
Richard W. Heo officer: Executive Vice President 2103 RESEARCH FOREST DRIVE, THE WOODLANDS TX 77380
Westley S. Stockton officer: VP, Controller, CAO 2103 RESEARCH FOREST DRIVE, THE WOODLANDS TX 77380
James R Bolch director C/O INGERSOLL-RAND COMPANY, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645
Marsha C Williams director EQUITY OFFICE PROPERTIES, CHICAGO IL 60606
Michael S Taff officer: Executive Vice President & CFO 777 N ELDRIDGE PARKWAY, HOUSTON TX 77079
Larry D Mcvay director 2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042
Philip K Asherman director, officer: President and CEO 1450 LAKE ROBBINS DR.,, SUITE 400, THE WOODLANDS TX 77380
Chandler Richard E Jr officer: EVP and Chief Legal Officer 1800 HUGHES LANDING BLVD, SUITE 250, THE WOODLANDS TX 77380
Sheila B Feldman officer: Executive Vice President
Ronald A Ballschmiede officer: Executive Vice President & CFO 1800 HUGHES LANDING BLVD, SUITE 250, THE WOODLANDS TX 77380

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