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Children's Place (Children's Place) ROE %

: 150.91% (As of Oct. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Children's Place's annualized net income for the quarter that ended in Oct. 2023 was $154 Mil. Children's Place's average Total Stockholders Equity over the quarter that ended in Oct. 2023 was $102 Mil. Therefore, Children's Place's annualized ROE % for the quarter that ended in Oct. 2023 was 150.91%.

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

PLCE' s ROE % Range Over the Past 10 Years
Min: -85.44   Med: 13.92   Max: 117.4
Current: -54.41

During the past 13 years, Children's Place's highest ROE % was 117.40%. The lowest was -85.44%. And the median was 13.92%.

PLCE's ROE % is ranked worse than
93.73% of 1085 companies
in the Retail - Cyclical industry
Industry Median: 6.03 vs PLCE: -54.41

Children's Place ROE % Historical Data

The historical data trend for Children's Place'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.

Children's Place Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.62 26.67 -85.44 117.40 -0.59

Children's Place Quarterly Data
Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23
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 86.50 -109.05 -81.14 -133.57 150.91

Competitive Comparison

For the Apparel Retail subindustry, Children's Place'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.


Children's Place ROE % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Children's Place's ROE % distribution charts can be found below:

* The bar in red indicates where Children's Place's ROE % falls into.



Children's Place ROE % Calculation

Children's Place's annualized ROE % for the fiscal year that ended in Jan. 2023 is calculated as

ROE %=Net Income (A: Jan. 2023 )/( (Total Stockholders Equity (A: Jan. 2022 )+Total Stockholders Equity (A: Jan. 2023 ))/ count )
=-1.138/( (225.472+158.478)/ 2 )
=-1.138/191.975
=-0.59 %

Children's Place's annualized ROE % for the quarter that ended in Oct. 2023 is calculated as

ROE %=Net Income (Q: Oct. 2023 )/( (Total Stockholders Equity (Q: Jul. 2023 )+Total Stockholders Equity (Q: Oct. 2023 ))/ count )
=153.928/( (85.93+118.071)/ 2 )
=153.928/102.0005
=150.91 %

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


Children's Place  (NAS:PLCE) 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: Oct. 2023 )
=Net Income/Total Stockholders Equity
=153.928/102.0005
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(153.928 / 1920.936)*(1920.936 / 998.233)*(998.233 / 102.0005)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.01 %*1.9243*9.7866
=ROA %*Equity Multiplier
=15.41 %*9.7866
=150.91 %

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: Oct. 2023 )
=Net Income/Total Stockholders Equity
=153.928/102.0005
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (153.928 / 148.112) * (148.112 / 182.2) * (182.2 / 1920.936) * (1920.936 / 998.233) * (998.233 / 102.0005)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0393 * 0.8129 * 9.48 % * 1.9243 * 9.7866
=150.91 %

Note: The net income data used here is four times the quarterly (Oct. 2023) net income data. The Revenue data used here is four times the quarterly (Oct. 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.


Children's Place ROE % Related Terms

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Children's Place (Children's Place) Business Description

Traded in Other Exchanges
Address
500 Plaza Drive, Secaucus, NJ, USA, 07094
Children's Place Inc is pure-play children's specialty apparel retailer in North America. It design, contract to manufacture, sell at retail and wholesale, and license to sell, trend right, high quality merchandise predominantly at value prices, under proprietary The Children's Place, Place, Baby Place, Gymboree, Sugar & Jade, and PJ Place brand names.
Executives
Maegan Markee officer: BRAND PRESIDENT 500 PLAZA DRIVE, SECAUCUS NJ 07094
Alicia Enciso director 1721 VALLEY AVENUE, MCLEAN VA 22101
Jane T Elfers officer: President and CEO C/O THE CHILDRENS PLACE RETAIL STORES, 915 SECAUCUS ROAD, SECAUCUS NJ 07094
Wesley S Mcdonald director
Michael A Shaffer director C/O PHILLIPS-VAN HEUSEN CORPORATION, 200 MADISON AVENUE, NEW YORK NY 10016
Sheamus Toal officer: SVP, CHIEF FINANCIAL OFFICER 450 W. 33RD STREET, 5TH FLOOR, NEW YORK NY 10001
John E. Bachman director 77 EXETER STREET, 1809, BOSTON MA 02116
Joseph A Alutto director 810 CURLEYS COURT, COLUMBUS OH 43235
Jared Shure officer: SVP, GEN COUNSEL & SECRETARY 500 PLAZA DRIVE, THE CHILDREN'S PLACE, SECAUCUS NJ 07094
Elizabeth J Boland director C/O BRIGHT HORIZONS FAMILY SOLUTIONS, 2 WELLS AVENUE, NEWTON MA 02459
Deborah Derby officer: CHIEF ADMINISTRATIVE OFFICER TOYS R US INC, 225 SUMMIT AVE, MONTVALE NJ 07645
Katherine Kountze director 500 PLAZA DRIVE, C/O THE CHILDREN'S PLACE, SECAUCUS NJ 07094
Michael D Rinaldo officer: CHIEF ACCOUNTING OFFICER C/O TIFFANY & CO., 727 FIFTH AVENUE, NEW YORK NY 10022
Leah Swan officer: CHIEF ADMINISTRATIVE OFFICER 500 PLAZA DRIVE, C/O THE CHILDREN'S PLACE, INC., SECAUCUS NJ 07094
Robert F Helm officer: SVP, FINANCE & INV MGMT (CAO) 500 PLAZA DRIVE, THE CHILDREN'S PLACE, SECAUCUS NJ 07094