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Lords Group Trading (LSE:LORD) ROE % : 14.82% (As of Jun. 2023)


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What is Lords Group Trading ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Lords Group Trading's annualized net income for the quarter that ended in Jun. 2023 was £7.7 Mil. Lords Group Trading's average Total Stockholders Equity over the quarter that ended in Jun. 2023 was £51.8 Mil. Therefore, Lords Group Trading's annualized ROE % for the quarter that ended in Jun. 2023 was 14.82%.

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

LSE:LORD' s ROE % Range Over the Past 10 Years
Min: -25.36   Med: 19.44   Max: 23.92
Current: 17.63

During the past 5 years, Lords Group Trading's highest ROE % was 23.92%. The lowest was -25.36%. And the median was 19.44%.

LSE:LORD's ROE % is ranked better than
77.08% of 144 companies
in the Industrial Distribution industry
Industry Median: 10.18 vs LSE:LORD: 17.63

Lords Group Trading ROE % Historical Data

The historical data trend for Lords Group Trading'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.

Lords Group Trading ROE % Chart

Lords Group Trading Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
3.32 -25.36 23.92 19.44 20.13

Lords Group Trading Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
ROE % Get a 7-Day Free Trial Premium Member Only 47.76 10.43 18.15 20.53 14.82

Competitive Comparison of Lords Group Trading's ROE %

For the Industrial Distribution subindustry, Lords Group Trading'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.


Lords Group Trading's ROE % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Lords Group Trading's ROE % distribution charts can be found below:

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



Lords Group Trading ROE % Calculation

Lords Group Trading's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=9.117/( (39.724+50.86)/ 2 )
=9.117/45.292
=20.13 %

Lords Group Trading's annualized ROE % for the quarter that ended in Jun. 2023 is calculated as

ROE %=Net Income (Q: Jun. 2023 )/( (Total Stockholders Equity (Q: Dec. 2022 )+Total Stockholders Equity (Q: Jun. 2023 ))/ count )
=7.678/( (50.86+52.737)/ 2 )
=7.678/51.7985
=14.82 %

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


Lords Group Trading  (LSE:LORD) 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. 2023 )
=Net Income/Total Stockholders Equity
=7.678/51.7985
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(7.678 / 445.104)*(445.104 / 239.739)*(239.739 / 51.7985)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.72 %*1.8566*4.6283
=ROA %*Equity Multiplier
=3.19 %*4.6283
=14.82 %

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. 2023 )
=Net Income/Total Stockholders Equity
=7.678/51.7985
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (7.678 / 11.178) * (11.178 / 16.556) * (16.556 / 445.104) * (445.104 / 239.739) * (239.739 / 51.7985)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6869 * 0.6752 * 3.72 % * 1.8566 * 4.6283
=14.82 %

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


Lords Group Trading ROE % Related Terms

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Lords Group Trading (LSE:LORD) Business Description

Traded in Other Exchanges
Address
12-15 Hanger Green, 2nd Floor, London, GBR, W5 3EL
Lords Group Trading PLC is a distributor of building, plumbing, heating, and DIY goods. The group principally sells to local tradesmen, small to medium-sized plumbing and heating merchants, construction companies and retails directly to the public. Its operating two divisions include Merchanting: supplies building materials and DIY goods through its network of merchant businesses and online platform capabilities; Heating and Plumbing: a distributor in the UK of heating and plumbing products to a UK network of independent merchants, installers and the general public. It focused on the growing Repairs, Maintenance, and Improvement (RMI) market, and construction market. Its main clients are local tradesmen, hardware stores, plumbing and heating merchants and construction companies.

Lords Group Trading (LSE:LORD) Headlines

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