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G & K Services (G & K Services) ROE % : 9.22% (As of Dec. 2016)


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What is G & K Services ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. G & K Services's annualized net income for the quarter that ended in Dec. 2016 was $37.0 Mil. G & K Services's average Total Stockholders Equity over the quarter that ended in Dec. 2016 was $401.6 Mil. Therefore, G & K Services's annualized ROE % for the quarter that ended in Dec. 2016 was 9.22%.

The historical rank and industry rank for G & K Services's ROE % or its related term are showing as below:

GK's ROE % is not ranked *
in the Business Services industry.
Industry Median: 8.71
* Ranked among companies with meaningful ROE % only.

G & K Services ROE % Historical Data

The historical data trend for G & K Services'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.

G & K Services ROE % Chart

G & K Services Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.26 10.74 11.34 - 18.48

G & K Services Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 18.99 18.23 20.24 10.21 9.22

Competitive Comparison of G & K Services's ROE %

For the Specialty Business Services subindustry, G & K Services'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.


G & K Services's ROE % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, G & K Services's ROE % distribution charts can be found below:

* The bar in red indicates where G & K Services's ROE % falls into.



G & K Services ROE % Calculation

G & K Services's annualized ROE % for the fiscal year that ended in Jun. 2016 is calculated as

ROE %=Net Income (A: Jun. 2016 )/( (Total Stockholders Equity (A: Jun. 2015 )+Total Stockholders Equity (A: Jun. 2016 ))/ count )
=72.439/( (394.35+389.54)/ 2 )
=72.439/391.945
=18.48 %

G & K Services's annualized ROE % for the quarter that ended in Dec. 2016 is calculated as

ROE %=Net Income (Q: Dec. 2016 )/( (Total Stockholders Equity (Q: Sep. 2016 )+Total Stockholders Equity (Q: Dec. 2016 ))/ count )
=37.048/( (397.977+405.309)/ 2 )
=37.048/401.643
=9.22 %

* 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. 2016) net income data. ROE % is displayed in the 30-year financial page.


G & K Services  (NAS:GK) 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. 2016 )
=Net Income/Total Stockholders Equity
=37.048/401.643
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(37.048 / 976.58)*(976.58 / 921.9955)*(921.9955 / 401.643)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.79 %*1.0592*2.2956
=ROA %*Equity Multiplier
=4.01 %*2.2956
=9.22 %

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. 2016 )
=Net Income/Total Stockholders Equity
=37.048/401.643
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (37.048 / 74.992) * (74.992 / 83.252) * (83.252 / 976.58) * (976.58 / 921.9955) * (921.9955 / 401.643)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.494 * 0.9008 * 8.52 % * 1.0592 * 2.2956
=9.22 %

Note: The net income data used here is four times the quarterly (Dec. 2016) net income data. The Revenue data used here is four times the quarterly (Dec. 2016) 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.


G & K Services ROE % Related Terms

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


G & K Services (G & K Services) Business Description

Traded in Other Exchanges
N/A
Address
G&K Services provides uniform rental services to businesses of all sizes in the United States and Canada. It is the fourth-largest provider in a relatively fragmented industry, with roughly 8,000 employees and 165 locations. Ancillary products include the rental and sale of entrance mats, mops, shop towels, and restroom supplies.
Executives
Wayne M Fortun director HUTCHINSON TECHNOLOGY INC, 40 WEST HIGHLAND PARK, HUTCHINSON MN 55350
Thomas Greco director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Ernest J Mrozek director SERVICE MASTER, 2300 WARRENVILLE ROAD, DOWNERS GROVE IL 60515
Lynn Crump Caine director 370 KNOLLWOOD STREET, SUITE 500, WINSTON-SALEM NC 27103
Tracy C Jokinen officer: Chief Financial Officer 5995 OPUS PARKWAY, SUITE 500, MINNETONKA MN 55343
Douglas A. Milroy director, officer: Chairman and CEO PO BOX 1299, MINNEAPOLIS MN 55440
Jeffrey Louis Cotter officer: VP, General Counsel, Secretary DELUXE CORPORATION, 3680 VICTORIA STREET N, SHOREVIEW MN 55126
Lee J Schram director
Jeffrey L Wright officer: Executive VP
J Patrick Doyle director 8701 COLLINS AVENUE UNIT 1202, MIAMI BEACH FL 33154
Richard L Marcantonio director, officer: Chairman and CEO
Donald W Goldfus director

G & K Services (G & K Services) Headlines

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