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Harley-Davidson (Harley-Davidson) ROE %

: 3.15% (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. Harley-Davidson's annualized net income for the quarter that ended in Dec. 2023 was $103 Mil. Harley-Davidson's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $3,281 Mil. Therefore, Harley-Davidson's annualized ROE % for the quarter that ended in Dec. 2023 was 3.15%.

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

HOG' s ROE % Range Over the Past 10 Years
Min: 0.07   Med: 28.13   Max: 36.82
Current: 22.43

During the past 13 years, Harley-Davidson's highest ROE % was 36.82%. The lowest was 0.07%. And the median was 28.13%.

HOG's ROE % is ranked better than
90.28% of 1266 companies
in the Vehicles & Parts industry
Industry Median: 7.445 vs HOG: 22.43

Harley-Davidson ROE % Historical Data

The historical data trend for Harley-Davidson'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.

Harley-Davidson 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 23.68 0.07 30.40 27.17 22.95

Harley-Davidson 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 5.83 40.57 22.67 24.45 3.15

Competitive Comparison

For the Recreational Vehicles subindustry, Harley-Davidson'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.


Harley-Davidson ROE % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Harley-Davidson's ROE % distribution charts can be found below:

* The bar in red indicates where Harley-Davidson's ROE % falls into.



Harley-Davidson ROE % Calculation

Harley-Davidson'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 )
=706.586/( (2903.519+3252.808)/ 2 )
=706.586/3078.1635
=22.95 %

Harley-Davidson'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 )
=103.232/( (3310.016+3252.808)/ 2 )
=103.232/3281.412
=3.15 %

* 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.


Harley-Davidson  (NYSE:HOG) 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
=103.232/3281.412
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(103.232 / 4212.84)*(4212.84 / 12301.385)*(12301.385 / 3281.412)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.45 %*0.3425*3.7488
=ROA %*Equity Multiplier
=0.84 %*3.7488
=3.15 %

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
=103.232/3281.412
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (103.232 / 18.272) * (18.272 / -84.592) * (-84.592 / 4212.84) * (4212.84 / 12301.385) * (12301.385 / 3281.412)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 5.6497 * -0.216 * -2.01 % * 0.3425 * 3.7488
=3.15 %

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.


Harley-Davidson ROE % Related Terms

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


Harley-Davidson (Harley-Davidson) Business Description

Address
3700 West Juneau Avenue, Milwaukee, WI, USA, 53208
Harley-Davidson is a global leading manufacturer of heavyweight motorcycles, merchandise, parts, and accessories. It sells custom, cruiser, and touring motorcycles and offers a complete line of Harley-Davidson motorcycle parts, accessories, riding gear, and apparel, as well as merchandise. Harley-Davidson Financial Services provides wholesale financing to dealers and retail financing and insurance brokerage services to customers. Harley has historically captured about half of all heavyweight domestic retail motorcycle registrations, a metric it had ceded in 2020 as it repositioned the business, and has yet to restore (at 39% in the third quarter). In recent years the firm has expanded into the adventure touring market with its Pan America model and into electric with the LiveWire brand.
Executives
Charles Do officer: Sr. Vice President, HDFSI 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Rafeh Masood director C/O BJ'S WHOLESALE CLUB, INC., 25 RESEARCH DRIVE, WESTBOROUGH MA 01581
Sara L Levinson director RODALE INC, 733 3RD AVE 15TH FL, MILWAUKEE WI 10017
Allan C. Golston director 2825 AIRVIEW BLVD., KALAMAZOO MI 49002
Farley Jr James D director FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126
Maryrose Sylvester director C/O 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
R John Anderson director LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Norman Thomas Linebarger director
Troy Alstead director 1155 BATTERY STREET, SAN FRANCISCO CA 94111
David Viney officer: Interim CFO, VP and Treasurer 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
O'sullivan Coyne Edel M. officer: Chief Commercial Officer 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Jonathan R Root officer: SVP - HDFSI 3700 W JUNEAU, MILWAUKEE WI 53208
Jagdish Krishnan officer: Chief Digital Officer 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Tori Termaat officer: Chief Human Resources Officer 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Gina M Goetter officer: Chief Financial Officer C/O HASBRO, INC., 1027 NEWPORT AVENUE, PAWTUCKET RI 02861