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Ryland Group (FRA:RYG) ROE % : 14.60% (As of Jun. 2015)


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What is Ryland Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ryland Group's annualized net income for the quarter that ended in Jun. 2015 was €152 Mil. Ryland Group's average Total Stockholders Equity over the quarter that ended in Jun. 2015 was €1,040 Mil. Therefore, Ryland Group's annualized ROE % for the quarter that ended in Jun. 2015 was 14.60%.

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

FRA:RYG' s ROE % Range Over the Past 10 Years
Min: -42.87   Med: -1.11   Max: 53.71
Current: 17.64

During the past 13 years, Ryland Group's highest ROE % was 53.71%. The lowest was -42.87%. And the median was -1.11%.

FRA:RYG's ROE % is not ranked
in the Homebuilding & Construction industry.
Industry Median: 7.74 vs FRA:RYG: 17.64

Ryland Group ROE % Historical Data

The historical data trend for Ryland 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.

Ryland Group ROE % Chart

Ryland Group Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -16.57 -10.72 8.48 52.89 18.49

Ryland Group Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
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 13.34 20.04 28.06 10.19 14.60

Competitive Comparison of Ryland Group's ROE %

For the Residential Construction subindustry, Ryland 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.


Ryland Group's ROE % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Ryland Group's ROE % distribution charts can be found below:

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



Ryland Group ROE % Calculation

Ryland Group's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %=Net Income (A: Dec. 2014 )/( (Total Stockholders Equity (A: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=142.573/( (662.874+879.589)/ 2 )
=142.573/771.2315
=18.49 %

Ryland Group's annualized ROE % for the quarter that ended in Jun. 2015 is calculated as

ROE %=Net Income (Q: Jun. 2015 )/( (Total Stockholders Equity (Q: Mar. 2015 )+Total Stockholders Equity (Q: Jun. 2015 ))/ count )
=151.832/( (1039.194+1040.167)/ 2 )
=151.832/1039.6805
=14.60 %

* 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 (Jun. 2015) net income data. ROE % is displayed in the 30-year financial page.


Ryland Group  (FRA:RYG) 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: Jun. 2015 )
=Net Income/Total Stockholders Equity
=151.832/1039.6805
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(151.832 / 2329.556)*(2329.556 / 2675.8845)*(2675.8845 / 1039.6805)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.52 %*0.8706*2.5738
=ROA %*Equity Multiplier
=5.68 %*2.5738
=14.60 %

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: Jun. 2015 )
=Net Income/Total Stockholders Equity
=151.832/1039.6805
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (151.832 / 237.164) * (237.164 / 247.436) * (247.436 / 2329.556) * (2329.556 / 2675.8845) * (2675.8845 / 1039.6805)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6402 * 0.9585 * 10.62 % * 0.8706 * 2.5738
=14.60 %

Note: The net income data used here is four times the quarterly (Jun. 2015) net income data. The Revenue data used here is four times the quarterly (Jun. 2015) 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.


Ryland Group ROE % Related Terms

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


Ryland Group (FRA:RYG) Business Description

Traded in Other Exchanges
N/A
Address
Ryland Group Inc is a Maryland corporation, which was founded in 1967. It is a homebuilder and a mortgage-finance company. The Company consists of six operating business segments namely four geographically determined homebuilding regions; financial services; and corporate. The Company's homebuilding operations consist of four regional reporting segments namely North, Southeast, Texas and West. The homebuilding segments specialize in the sale and construction of single-family attached and detached housing. Its operations in each of its homebuilding markets might differ due to a number of market-specific factors. These factors include regional economic conditions and job growth; land availability and local land development; consumer preferences; competition from other homebuilders; and home resale activity. The Company's financial services segment includes RMC, RH Insurance Company, Inc. or RHIC, LPS Holdings Corporation and its subsidiaries and Columbia National Risk Retention Group, Inc. or CNRRG. Corporate is a non-operating business segment whose purpose is to support operations. Corporate is responsible for establishing operational policies and internal control standards; implementing strategic initiatives; and monitoring compliance with policies and controls throughout the Company's operations. Corporate acts as an internal source of capital and provides financial, human resource, information technology, insurance, legal, marketing, national purchasing and tax compliance services. In addition, it performs administrative functions associated with a publicly traded entity. Ryland Insurance Services or RIS, a wholly-owned subsidiary of RMC, provides insurance services to the Company's homebuyers. As single-family on-site homebuilders in the United States, it operates in 17 states. The Company's homebuilding segments are subject to a number of local, state and federal laws, statutes, ordinances, rules and regulations concerning zoning, building design, construction, stormwater permitting and discharge and similar matters, as well as open space, wetlands and environmentally protected areas.

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