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Prologis (Prologis) ROE % : 4.73% (As of Dec. 2023)


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What is Prologis ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Prologis's annualized net income for the quarter that ended in Dec. 2023 was $2,524 Mil. Prologis's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $53,409 Mil. Therefore, Prologis's annualized ROE % for the quarter that ended in Dec. 2023 was 4.73%.

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

PLD' s ROE % Range Over the Past 10 Years
Min: 4.6   Med: 7.39   Max: 10.79
Current: 5.74

During the past 13 years, Prologis's highest ROE % was 10.79%. The lowest was 4.60%. And the median was 7.39%.

PLD's ROE % is ranked better than
59% of 800 companies
in the REITs industry
Industry Median: 4.21 vs PLD: 5.74

Prologis ROE % Historical Data

The historical data trend for Prologis'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.

Prologis ROE % Chart

Prologis Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 5.43 8.99 7.77 5.75

Prologis Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 5.31 3.50 9.15 5.58 4.73

Competitive Comparison of Prologis's ROE %

For the REIT - Industrial subindustry, Prologis'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.


Prologis's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Prologis's ROE % distribution charts can be found below:

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



Prologis ROE % Calculation

Prologis'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 )
=3059.214/( (53237.282+53181.724)/ 2 )
=3059.214/53209.503
=5.75 %

Prologis'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 )
=2523.744/( (53635.831+53181.724)/ 2 )
=2523.744/53408.7775
=4.73 %

* 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.


Prologis  (NYSE:PLD) 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
=2523.744/53408.7775
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2523.744 / 7556.988)*(7556.988 / 92485.1245)*(92485.1245 / 53408.7775)
=Net Margin %*Asset Turnover*Equity Multiplier
=33.4 %*0.0817*1.7316
=ROA %*Equity Multiplier
=2.73 %*1.7316
=4.73 %

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
=2523.744/53408.7775
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2523.744 / 2937.524) * (2937.524 / 2575.364) * (2575.364 / 7556.988) * (7556.988 / 92485.1245) * (92485.1245 / 53408.7775)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8591 * 1.1406 * 34.08 % * 0.0817 * 1.7316
=4.73 %

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.


Prologis ROE % Related Terms

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


Prologis (Prologis) Business Description

Address
Pier 1, Bay 1, San Francisco, CA, USA, 94111
Prologis was formed by the June 2011 merger of AMB Property and Prologis Trust. The company develops, acquires, and operates around 1.2 billion square feet of high-quality industrial and logistics facilities across the globe. The company also has a strategic capital business segment that has around $60 billion of third-party AUM. The company is organized into four global divisions (Americas, Europe, Asia, and other Americas) and operates as a real estate investment trust.
Executives
James B. Connor director 600 E 96TH ST, #100, INDIANAPOLIS IN 46240
George L Fotiades director 281 SUMMIT AVENUE, SUMMIT NJ 07901
Daniel Letter officer: President PIER 1, BAY 1, SAN FRANCISCO CA 94111
David P Oconnor director C/O HIGH RISE, 325 NORTH AVENUE E, WESTFIELD NJ 07090
Avid Modjtabai director 420 MONTGOMERY STREET, 12TH FLOOR, SAN FRANCISCO CA 94104
Lyons Irving F Iii director C/O ESSEX PROPERTY TRUST, INC., 925 E. MEADOW DRIVE, PALO ALTO CA 94303
Timothy D Arndt officer: Chief Financial Officer PIER 1, BAY 1, SAN FRANCISCO CA 94111
William D Zollars director 10777 BARKLEY, PO BOX 7563, OVERLAND PARK KS 66207-0563
Hamid R Moghadam director, officer: Chairman & CEO PIER 1, BAY 1, SAN FRANCISCO CA 94111
Lydia H Kennard director 155 N LAKE AVE, PASADENA CA 91101
Jeffrey L Skelton director
Eugene F Reilly officer: Executive Vice President C/O AMB PROPERTY CORP, PIER I BAY 1, SAN FRANCISCO CA 94111
Thomas S Olinger officer: Chief Financial Officer C/O AMB PROPERTY CORPORATION, PIER 1, BAY 1, SAN FRANCISCO CA 94111
Philip L Hawkins director C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Edward S Nekritz officer: Chief Legal Off./Gen. Counsel KATE MEADE, 14100 E 35TH PL, AURORA CO 80011

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