GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) » Definitions » ROE %

Starwood Hotels & Resorts Worldwide (Starwood Hotels & Resorts Worldwide) ROE % : -138.60% (As of Jun. 2016)


View and export this data going back to 1982. Start your Free Trial

What is Starwood Hotels & Resorts Worldwide ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Starwood Hotels & Resorts Worldwide's annualized net income for the quarter that ended in Jun. 2016 was $-1,052 Mil. Starwood Hotels & Resorts Worldwide's average Total Stockholders Equity over the quarter that ended in Jun. 2016 was $759 Mil. Therefore, Starwood Hotels & Resorts Worldwide's annualized ROE % for the quarter that ended in Jun. 2016 was -138.60%.

The historical rank and industry rank for Starwood Hotels & Resorts Worldwide's ROE % or its related term are showing as below:

HOT's ROE % is not ranked *
in the Travel & Leisure industry.
Industry Median: 5.96
* Ranked among companies with meaningful ROE % only.

Starwood Hotels & Resorts Worldwide ROE % Historical Data

The historical data trend for Starwood Hotels & Resorts Worldwide'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.

Starwood Hotels & Resorts Worldwide ROE % Chart

Starwood Hotels & Resorts Worldwide Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.03 18.45 19.55 25.92 34.67

Starwood Hotels & Resorts Worldwide Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 40.60 27.16 52.14 27.27 -138.60

Competitive Comparison of Starwood Hotels & Resorts Worldwide's ROE %

For the Lodging subindustry, Starwood Hotels & Resorts Worldwide'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.


Starwood Hotels & Resorts Worldwide's ROE % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Starwood Hotels & Resorts Worldwide's ROE % distribution charts can be found below:

* The bar in red indicates where Starwood Hotels & Resorts Worldwide's ROE % falls into.



Starwood Hotels & Resorts Worldwide ROE % Calculation

Starwood Hotels & Resorts Worldwide's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=489/( (1525+1296)/ 2 )
=489/1410.5
=34.67 %

Starwood Hotels & Resorts Worldwide's annualized ROE % for the quarter that ended in Jun. 2016 is calculated as

ROE %=Net Income (Q: Jun. 2016 )/( (Total Stockholders Equity (Q: Mar. 2016 )+Total Stockholders Equity (Q: Jun. 2016 ))/ count )
=-1052/( (1344+174)/ 2 )
=-1052/759
=-138.60 %

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


Starwood Hotels & Resorts Worldwide  (NYSE:HOT) 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: Jun. 2016 )
=Net Income/Total Stockholders Equity
=-1052/759
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1052 / 4984)*(4984 / 7683)*(7683 / 759)
=Net Margin %*Asset Turnover*Equity Multiplier
=-21.11 %*0.6487*10.1225
=ROA %*Equity Multiplier
=-13.69 %*10.1225
=-138.60 %

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: Jun. 2016 )
=Net Income/Total Stockholders Equity
=-1052/759
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-1052 / 208) * (208 / 724) * (724 / 4984) * (4984 / 7683) * (7683 / 759)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -5.0577 * 0.2873 * 14.53 % * 0.6487 * 10.1225
=-138.60 %

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


Starwood Hotels & Resorts Worldwide ROE % Related Terms

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


Starwood Hotels & Resorts Worldwide (Starwood Hotels & Resorts Worldwide) Business Description

Traded in Other Exchanges
N/A
Address
Starwood Hotels & Resorts Worldwide Inc was incorporated in 1980 under the laws of Maryland. It operates as a hotel and leisure company. The Company conducts its hotel and leisure business both directly and through its subsidiaries. It has 1,222 properties providing approximately 354,200 rooms in approximately 100 countries and 180,400 employees under its management at its owned and managed properties, vacation ownership resorts and corporate offices. The Company manage and operate its hotel business in three separate hotel segments: the Americas, Europe, Africa and the Middle East ("EAME"), and Asia Pacific. Its vacation ownership and residential business is a separate segment. It franchises its Luxury Collection, Westin, Le Méridien, Sheraton, Four Points by Sheraton, Aloft and Element brands and generally derive licensing and other fees from franchisees based on a fixed percentage of the franchised hotel's room revenue, as well as fees for other services, including centralized reservations, loyalty program, national and international advertising and sales and marketing. The Company's brands name includes St. Regis, The Luxury Collection, W, Westin, Le Méridien, Sheraton, Four Points, Aloft, and Element. Some of its competitors are private management firms, several are national and international chains that own and operate their own hotels, as well as manage hotels for third-party owners and sell VOIs, under a variety of brands that compete directly with its brands. It is subject to taxation at the federal, state or provincial and local levels in the U.S. and various other countries and jurisdictions.
Executives
Charlene Barshefsky director
Lizanne Galbreath director LASALLE PARTNERS INC, 200 RANDOLPH DR, CHICAGO IL 60601
Kenneth S Siegel officer: CAO & General Counsel 40 STARWOOD HOTELS & RESORTS, 111 WESTCHESTER AVE, WHITE PLAINS NY 10604
Thomas B Mangas director, officer: Chief Executive Officer C/O ARMSTRONG WORLD INDUSTRIES, INC., 2500 COLUMBIA AVENUE, LANCASTER PA 17603
Sergio Rivera officer: President, The Americas C/O STARWOOD HOTELS & RESORTS WORLDWIDE,, ONE STARPOINT, STAMFORD CT 06902
Stephen R Quazzo director C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601
Daley Clayton C Jr director C/O THE PROCTER & GAMBLE COMPANY,, ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Thomas E Clarke director C/O NEWELL RUBBERMAID INC, THREE GLENLAKE PKWY., ATLANTA 2Q 30328
Thomas O Ryder director C/O READERS DIGEST ASSOCITATION INC, READERS DIGEST RD., PLEASANTVILLE NY 10570
Aylwin B Lewis director 111 N. CANAL, SUITE 850, CHICAGO IL 60606
Eric Hippeau director STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601
Bruce W Duncan director ONE NORTH WACKER DRIVE, SUITE 4200, CHICAGO IL 60606
Adam M Aron director, officer: CEO on an interim basis AMC ENTERTAINMENT HOLDINGS, INC, 11500 ASH STREET, LEAWOOD KS 66211
Van Paasschen Frits D director, officer: President and CEO C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 1111 WESTCHESTER AVENUE, WHITE PLAINS NY 10604
Vasant M Prabhu officer: Vice Chairman & CFO C/O SAFEWAY INC, 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588

Starwood Hotels & Resorts Worldwide (Starwood Hotels & Resorts Worldwide) Headlines