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Newell Brands (Newell Brands) ROE %

: -11.03% (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. Newell Brands's annualized net income for the quarter that ended in Dec. 2023 was $-344 Mil. Newell Brands's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $3,119 Mil. Therefore, Newell Brands's annualized ROE % for the quarter that ended in Dec. 2023 was -11.03%.

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

NWL' s ROE % Range Over the Past 10 Years
Min: -71.7   Med: 6.57   Max: 21.56
Current: -11.83

During the past 13 years, Newell Brands's highest ROE % was 21.56%. The lowest was -71.70%. And the median was 6.57%.

NWL's ROE % is ranked worse than
86.77% of 1814 companies
in the Consumer Packaged Goods industry
Industry Median: 6.405 vs NWL: -11.83

Newell Brands ROE % Historical Data

The historical data trend for Newell Brands'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.

Newell Brands 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 2.10 -17.43 15.49 5.13 -11.70

Newell Brands 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 -27.31 -11.91 2.17 -27.08 -11.03

Competitive Comparison

For the Household & Personal Products subindustry, Newell Brands'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.


Newell Brands ROE % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Newell Brands's ROE % distribution charts can be found below:

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



Newell Brands ROE % Calculation

Newell Brands'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 )
=-388/( (3519+3112)/ 2 )
=-388/3315.5
=-11.70 %

Newell Brands'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 )
=-344/( (3126+3112)/ 2 )
=-344/3119
=-11.03 %

* 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.


Newell Brands  (NAS:NWL) 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
=-344/3119
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-344 / 8304)*(8304 / 12367.5)*(12367.5 / 3119)
=Net Margin %*Asset Turnover*Equity Multiplier
=-4.14 %*0.6714*3.9652
=ROA %*Equity Multiplier
=-2.78 %*3.9652
=-11.03 %

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
=-344/3119
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-344 / -656) * (-656 / 308) * (308 / 8304) * (8304 / 12367.5) * (12367.5 / 3119)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5244 * -2.1299 * 3.71 % * 0.6714 * 3.9652
=-11.03 %

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.


Newell Brands ROE % Related Terms

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


Newell Brands (Newell Brands) Business Description

Traded in Other Exchanges
Address
6655 Peachtree Dunwoody Road, Atlanta, GA, USA, 30328
Newell Brands Inc is an American global consumer goods company. The business activities of the group function through five segments namely, Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, Outdoor and Recreation. The learning and Development segment generates most of the revenue for the firm which offers baby gear and infant care products; writing instruments, including markers and highlighters, pens and pencils; art products; activity-based adhesive and cutting products, and labeling solutions.
Executives
Bradford R Turner officer: Sr. VP, Gen. Sounsel & Secy C/O NEWELL BRANDS INC., 6055 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Gaoxiang Hu director 16690 COLLINS AVE., SUITE PH-1, SUNNY ISLES BEACH FL 33160
Dennis Senovich officer: Chief Supply Chain Officer 6655 PEACHTREE DUNWOODY RD, ATLANTA GA 30328
Mark J Erceg officer: Chief Financial Officer 248 E. SKYLINE DRIVE, WASHINGTON UT 84780
David Willetts director 16690 COLLINS AVENUE - PH-1, SUNNY ISLES BEACH FL 33160
Brett Icahn director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Melanie Arlene Huet officer: President, Brand Management 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Stephanie Stahl director C/O KNOLL, INC., 1235 WATER STREET, EAST GREENVILLE PA 18041
James Craigie director 500 CHARLES EWING BLVD, EWING NJ 08628
Mather Courtney director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Maria Fernanda Mejia officer: CEO, International ONE KELLOGG SQUARE, PO BOX 3599, BATTLE CREEK MI 49016-3599
Carl C Icahn 10 percent owner C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
Icahn Partners Lp 10 percent owner 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Icahn Partners Master Fund Lp 10 percent owner 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Kristine Kay Malkoski officer: Business Unit CEO - Food 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328