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HSN (HSNI) ROE % : 30.04% (As of Sep. 2017)


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What is HSN ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. HSN's annualized net income for the quarter that ended in Sep. 2017 was $65 Mil. HSN's average Total Stockholders Equity over the quarter that ended in Sep. 2017 was $216 Mil. Therefore, HSN's annualized ROE % for the quarter that ended in Sep. 2017 was 30.04%.

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

HSNI's ROE % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 5.995
* Ranked among companies with meaningful ROE % only.

HSN ROE % Historical Data

The historical data trend for HSN'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.

HSN ROE % Chart

HSN Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.88 34.53 30.58 45.20 69.41

HSN Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 49.78 97.37 42.83 62.95 30.04

Competitive Comparison of HSN's ROE %

For the Specialty Retail subindustry, HSN'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.


HSN's ROE % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, HSN's ROE % distribution charts can be found below:

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



HSN ROE % Calculation

HSN's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %=Net Income (A: Dec. 2016 )/( (Total Stockholders Equity (A: Dec. 2015 )+Total Stockholders Equity (A: Dec. 2016 ))/ count )
=118.708/( (146.562+195.486)/ 2 )
=118.708/171.024
=69.41 %

HSN's annualized ROE % for the quarter that ended in Sep. 2017 is calculated as

ROE %=Net Income (Q: Sep. 2017 )/( (Total Stockholders Equity (Q: Jun. 2017 )+Total Stockholders Equity (Q: Sep. 2017 ))/ count )
=64.908/( (215.113+216.998)/ 2 )
=64.908/216.0555
=30.04 %

* 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 (Sep. 2017) net income data. ROE % is displayed in the 30-year financial page.


HSN  (NAS:HSNI) 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: Sep. 2017 )
=Net Income/Total Stockholders Equity
=64.908/216.0555
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(64.908 / 3130.248)*(3130.248 / 1211.5135)*(1211.5135 / 216.0555)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.07 %*2.5837*5.6074
=ROA %*Equity Multiplier
=5.35 %*5.6074
=30.04 %

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: Sep. 2017 )
=Net Income/Total Stockholders Equity
=64.908/216.0555
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (64.908 / 115.708) * (115.708 / 131.776) * (131.776 / 3130.248) * (3130.248 / 1211.5135) * (1211.5135 / 216.0555)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.561 * 0.8781 * 4.21 % * 2.5837 * 5.6074
=30.04 %

Note: The net income data used here is four times the quarterly (Sep. 2017) net income data. The Revenue data used here is four times the quarterly (Sep. 2017) 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.


HSN ROE % Related Terms

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


HSN (HSNI) Business Description

Traded in Other Exchanges
N/A
Address
HSN Inc is a multi-channel retailer offering retail experiences through various platforms including television, online, mobile, catalogs and in retail and outlet stores. It operates through two different operating segments, HSN and Cornerstone.
Executives
Liberty Interactive Corp 10 percent owner 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
James M Follo director 620 8TH AVENUNE, NEW YORK NY 10018
Rod R Little officer: Chief Financial Officer 1 HSN DRIVE, ST. PETERSBURG FL 33729
Thomas Mcinerney director ALTABA INC., 140 E 45TH STREET, 15TH FLOOR, SUITE 15A, NEW YORK X1 10017
Ann Sarnoff director C/O HSN, INC., 1 HSN DRIVE, SAINT PETERSBURG FL 33729
Fiona P Dias director
Gregory J Henchel officer: Chief Legal Officer, Secretary C/O HSN, INC., 1 HSN DRIVE, ST. PETERSBURG FL 33729
Arthur C Martinez director SEARS ROEBUCK & CO, SEARS TOWER, PO BOX 081079, CHICAGO IL 60808-1079
Michael Attinella officer: Chief Accounting Officer C/O SUPERIOR GROUP OF COMPANIES, INC., 10055 SEMINOLE BLVE, SEMINOLE FL 33772
Chun Courtnee A director 12300 LIBERTY BLVD., ENGLEWOOD CO 80112
Judy Schmeling officer: Pres. Cornerstone, COO HSNi C/O HSN, INC., 1 HSN DRIVE, ST.PETERSBURG FL 33729
Maria D. Martinez officer: Chief Human Resources Officer C/O AXOGEN INC., 13631 PROGRESS BLVD, SUITE 400, ALACHUA FL 32615
Matthew E Rubel director 3231 SE SIXTH AVENUE, TOPEKA KS 66607
Mindy F Grossman director, officer: CEO 675 AVENUE OF THE AMERICAS, 6TH FLOOR, NEW YORK NY 10010
Morse John B Jr director C/O HSN, INC., 1 HSN DRIVE, ST. PETERSBURG FL 33729

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