ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sun Life Financial's annualized net income for the quarter that ended in Dec. 2023 was $2,463 Mil. Sun Life Financial's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $17,370 Mil. Therefore, Sun Life Financial's annualized ROE % for the quarter that ended in Dec. 2023 was 14.18%.
The historical rank and industry rank for Sun Life Financial's ROE % or its related term are showing as below:
SLF'
s ROE % Range Over the Past 10 Years
Min: 10.39 Med: 12.58 Max: 18.83
Current: 14.53
During the past 13 years, Sun Life Financial's highest ROE % was 18.83%. The lowest was 10.39%. And the median was 12.58%.
SLF's ROE % is ranked better than 68.45% of 485
companies
in the Insurance industry
Industry Median: 9.67
vs SLF: 14.53
Sun Life Financial ROE % Historical Data
The historical data trend for Sun Life Financial'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.
For the Insurance - Diversified subindustry, Sun Life Financial'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.
Sun Life Financial ROE % Distribution
For the Insurance industry and Financial Services sector, Sun Life Financial's ROE % distribution charts can be found below:
* The bar in red indicates where Sun Life Financial's ROE % falls into.
Sun Life Financial ROE % Calculation
Sun Life Financial's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
Sun Life Financial (NYSE:SLF) 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:
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.
Sun Life Financial ROE % Related Terms
Thank you for viewing the detailed overview of Sun Life Financial's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sun Life Financial (Sun Life Financial) Business Description
Sun Life provides life insurance, retirement, and asset management products to individuals and corporate customers in Canada, the United States, and Asia. The company's investment management business contributes approximately 38% of its adjusted earnings and has around CAD 1 trillion in assets under management as of the second quarter of 2023. The Canada business contributes about 32% of adjusted earnings and provides individual life and health insurance, group insurance, retirement services, and wealth management solutions. The U.S. business contributes approximately 14% of earnings and is mainly focused on providing group insurance products and managing the in-force life insurance policies. Finally, the Asia segment contributes around 16% of earnings.
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