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Silgan Holdings (Silgan Holdings) ROE %

: 14.04% (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. Silgan Holdings's annualized net income for the quarter that ended in Dec. 2023 was $258 Mil. Silgan Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,836 Mil. Therefore, Silgan Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 14.04%.

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

SLGN' s ROE % Range Over the Past 10 Years
Min: 18.03   Med: 25.59   Max: 43.65
Current: 18.03

During the past 13 years, Silgan Holdings's highest ROE % was 43.65%. The lowest was 18.03%. And the median was 25.59%.

SLGN's ROE % is ranked better than
85.75% of 379 companies
in the Packaging & Containers industry
Industry Median: 6.15 vs SLGN: 18.03

Silgan Holdings ROE % Historical Data

The historical data trend for Silgan Holdings'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.

Silgan Holdings 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 20.35 27.13 25.51 20.78 18.07

Silgan Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Take 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 5.77 16.47 17.28 24.22 14.04

Competitive Comparison

For the Packaging & Containers subindustry, Silgan Holdings'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.


Silgan Holdings ROE % Distribution

For the Packaging & Containers industry and Consumer Cyclical sector, Silgan Holdings's ROE % distribution charts can be found below:

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



Silgan Holdings ROE % Calculation

Silgan Holdings'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 )
=325.965/( (1718.256+1889.358)/ 2 )
=325.965/1803.807
=18.07 %

Silgan Holdings'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 )
=257.716/( (1781.889+1889.358)/ 2 )
=257.716/1835.6235
=14.04 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Silgan Holdings  (NYSE:SLGN) 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
=257.716/1835.6235
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(257.716 / 5360.384)*(5360.384 / 7711.7715)*(7711.7715 / 1835.6235)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.81 %*0.6951*4.2012
=ROA %*Equity Multiplier
=3.34 %*4.2012
=14.04 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=257.716/1835.6235
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (257.716 / 334.524) * (334.524 / 485.296) * (485.296 / 5360.384) * (5360.384 / 7711.7715) * (7711.7715 / 1835.6235)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7704 * 0.6893 * 9.05 % * 0.6951 * 4.2012
=14.04 %

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.


Silgan Holdings ROE % Related Terms

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


Silgan Holdings (Silgan Holdings) Business Description

Traded in Other Exchanges
Address
4 Landmark Square, Suite 400, Stamford, CT, USA, 06901
Silgan Holdings manufactures about half of the metal food containers in North America. Its major customers include Campbell Soup, Nestle, and Del Monte. Silgan's other business segments include plastic dispensers and containers for personal and healthcare products and a closures business that manufactures metal and plastic lids and caps.
Executives
Anthony J Allott officer: President and COO 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Thomas James Snyder officer: President - Silgan Containers C/O SILGAN CONTAINERS LLC, 21600 OXNARD STREET, SUITE 1600, WOODLAND HILLS CA 91367
Stacey J. Mcgrath officer: Vice President, Tax C/O SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Joseph M Jordan director C/O SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Robert B Lewis officer: EVP and CFO 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Shawn C Fabry officer: SVP, Corporate Development C/O SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Kimberly Irene Ulmer officer: Vice President & Controller 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Niharika Ramdev director C/O XL HYBRIDS, INC., 145 NEWTON STREET, BOSTON MA 02135
Daniel Patrick Murphy officer: Vice President & Controller C/O SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
B. Frederick Prinzen officer: Vice President, Corp. Dev. SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, STAMFORD CT 06901
Jay A Martin officer: Vice President P O BOX 5311, NEW CASTLE PA 16105
D Greg Horrigan director, 10 percent owner, officer: Co-Chairman and Co-CEO 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
William T Donovan director C/O SILGAN HOLDINGS INC., 4 LANDMARK SQUARE SUITE 400, STAMFORD CT 06901
Kimberly A Fields director C/O ALLEGHENY TECHNOLOGIES INCORPORATED, 1000 SIX PPG PLACE, PITTSBURGH PA 15217
Anthony P Andreacchi officer: Vice President, Tax 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901