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British Polythene Industries (LSE:BPI) ROE % : 17.55% (As of Dec. 2015)


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What is British Polythene Industries ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. British Polythene Industries's annualized net income for the quarter that ended in Dec. 2015 was £12.2 Mil. British Polythene Industries's average Total Stockholders Equity over the quarter that ended in Dec. 2015 was £69.5 Mil. Therefore, British Polythene Industries's annualized ROE % for the quarter that ended in Dec. 2015 was 17.55%.

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

LSE:BPI's ROE % is not ranked *
in the Packaging & Containers industry.
Industry Median: 6.36
* Ranked among companies with meaningful ROE % only.

British Polythene Industries ROE % Historical Data

The historical data trend for British Polythene Industries'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.

British Polythene Industries ROE % Chart

British Polythene Industries Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.00 34.92 28.50 36.55 30.92

British Polythene Industries Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15
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 9.62 41.39 26.48 44.36 17.55

Competitive Comparison of British Polythene Industries's ROE %

For the Packaging & Containers subindustry, British Polythene Industries'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.


British Polythene Industries's ROE % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, British Polythene Industries's ROE % distribution charts can be found below:

* The bar in red indicates where British Polythene Industries's ROE % falls into.



British Polythene Industries ROE % Calculation

British Polythene Industries's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=17.5/( (38.5+74.7)/ 2 )
=17.5/56.6
=30.92 %

British Polythene Industries's annualized ROE % for the quarter that ended in Dec. 2015 is calculated as

ROE %=Net Income (Q: Dec. 2015 )/( (Total Stockholders Equity (Q: Jun. 2015 )+Total Stockholders Equity (Q: Dec. 2015 ))/ count )
=12.2/( (64.3+74.7)/ 2 )
=12.2/69.5
=17.55 %

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


British Polythene Industries  (LSE:BPI) 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. 2015 )
=Net Income/Total Stockholders Equity
=12.2/69.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(12.2 / 405)*(405 / 251.85)*(251.85 / 69.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.01 %*1.6081*3.6237
=ROA %*Equity Multiplier
=4.84 %*3.6237
=17.55 %

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. 2015 )
=Net Income/Total Stockholders Equity
=12.2/69.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (12.2 / 14.8) * (14.8 / 19) * (19 / 405) * (405 / 251.85) * (251.85 / 69.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8243 * 0.7789 * 4.69 % * 1.6081 * 3.6237
=17.55 %

Note: The net income data used here is two times the semi-annual (Dec. 2015) net income data. The Revenue data used here is two times the semi-annual (Dec. 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.


British Polythene Industries ROE % Related Terms

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British Polythene Industries (LSE:BPI) Business Description

Traded in Other Exchanges
N/A
Address
British Polythene Industries PLC was incorporated on March 16, 1910. It manufactures and supplies polythene films and related products for packaging for the protection of food and other goods. Its products are in use across different market sectors with a focus on agriculture, retail food chain, healthcare and waste services. The Company also engages in recycling of waste polythene film in Europe. The Company has three reportable segments: UK and Ireland, Mainland Europe and North America. UK & Ireland includes all of the UK manufacturing and merchanting activities along with the Irish sales operation which distributes predominately UK manufactured products.It also includes the manufacturing operations in China. Mainland Europe comprises the manufacturing and merchanting activities located in Belgium, the Netherlands and France. North America comprises the manufacturing business in Canada with sales throughout North America and Canada.

British Polythene Industries (LSE:BPI) Headlines

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