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Compass Group (Compass Group) ROE %

: 25.87% (As of Sep. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Compass Group's annualized net income for the quarter that ended in Sep. 2023 was $1,673 Mil. Compass Group's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was $6,468 Mil. Therefore, Compass Group's annualized ROE % for the quarter that ended in Sep. 2023 was 25.87%.

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

CMPGY' s ROE % Range Over the Past 10 Years
Min: 3.26   Med: 37.64   Max: 50.21
Current: 23.99

During the past 13 years, Compass Group's highest ROE % was 50.21%. The lowest was 3.26%. And the median was 37.64%.

CMPGY's ROE % is ranked better than
80.97% of 331 companies
in the Restaurants industry
Industry Median: 8.76 vs CMPGY: 23.99

Compass Group ROE % Historical Data

The historical data trend for Compass Group'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.

Compass Group Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.91 3.32 7.59 18.85 25.00

Compass Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 10.80 18.24 21.00 23.41 25.87

Competitive Comparison

For the Restaurants subindustry, Compass Group'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.


Compass Group ROE % Distribution

For the Restaurants industry and Consumer Cyclical sector, Compass Group's ROE % distribution charts can be found below:

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



Compass Group ROE % Calculation

Compass Group's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as

ROE %=Net Income (A: Sep. 2023 )/( (Total Stockholders Equity (A: Sep. 2022 )+Total Stockholders Equity (A: Sep. 2023 ))/ count )
=1626.238/( (6652.322+6356.436)/ 2 )
=1626.238/6504.379
=25.00 %

Compass Group's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=1673.268/( (6578.883+6356.436)/ 2 )
=1673.268/6467.6595
=25.87 %

* 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 two times the semi-annual (Sep. 2023) net income data. ROE % is displayed in the 30-year financial page.


Compass Group  (OTCPK:CMPGY) 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. 2023 )
=Net Income/Total Stockholders Equity
=1673.268/6467.6595
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1673.268 / 38044.554)*(38044.554 / 21389.8755)*(21389.8755 / 6467.6595)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.4 %*1.7786*3.3072
=ROA %*Equity Multiplier
=7.83 %*3.3072
=25.87 %

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. 2023 )
=Net Income/Total Stockholders Equity
=1673.268/6467.6595
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1673.268 / 2267.326) * (2267.326 / 3094.06) * (3094.06 / 38044.554) * (38044.554 / 21389.8755) * (21389.8755 / 6467.6595)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.738 * 0.7328 * 8.13 % * 1.7786 * 3.3072
=25.87 %

Note: The net income data used here is two times the semi-annual (Sep. 2023) net income data. The Revenue data used here is two times the semi-annual (Sep. 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.


Compass Group ROE % Related Terms

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Compass Group (Compass Group) Business Description

Address
Guildford Street, Compass House, Chertsey, Surrey, GBR, KT16 9BQ
Compass Group is the largest food-service company globally, operating in more than 50 countries with annual sales of more than GBP 25 billion. Compass Group's model stems from operating on-premises catering facilities, rather than centralised industrial kitchens. Food service is Compass' core focus and contributes more than 80% of revenue. In addition, the company provides support services to clients through activities including cleaning services, office services (for example, concierge services), grounds maintenance, and so on.

Compass Group (Compass Group) Headlines

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