GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Hillshire Brands Co (LTS:0Q8L) » Definitions » ROE %

Hillshire Brands Co (LTS:0Q8L) ROE % : 17.60% (As of Jun. 2014)


View and export this data going back to . Start your Free Trial

What is Hillshire Brands Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hillshire Brands Co's annualized net income for the quarter that ended in Jun. 2014 was €79 Mil. Hillshire Brands Co's average Total Stockholders Equity over the quarter that ended in Jun. 2014 was €452 Mil. Therefore, Hillshire Brands Co's annualized ROE % for the quarter that ended in Jun. 2014 was 17.60%.

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

LTS:0Q8L' s ROE % Range Over the Past 10 Years
Min: -16.37   Med: 39.43   Max: 189.15
Current: 38.3

During the past 13 years, Hillshire Brands Co's highest ROE % was 189.15%. The lowest was -16.37%. And the median was 39.43%.

LTS:0Q8L's ROE % is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 6.62 vs LTS:0Q8L: 38.30

Hillshire Brands Co ROE % Historical Data

The historical data trend for Hillshire Brands Co'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.

Hillshire Brands Co ROE % Chart

Hillshire Brands Co Annual Data
Trend Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.94 31.00 69.61 87.63 68.94

Hillshire Brands Co Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 35.89 23.64 85.89 28.61 17.60

Competitive Comparison of Hillshire Brands Co's ROE %

For the Packaged Foods subindustry, Hillshire Brands Co'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.


Hillshire Brands Co's ROE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hillshire Brands Co's ROE % distribution charts can be found below:

* The bar in red indicates where Hillshire Brands Co's ROE % falls into.



Hillshire Brands Co ROE % Calculation

Hillshire Brands Co's annualized ROE % for the fiscal year that ended in Jun. 2013 is calculated as

ROE %=Net Income (A: Jun. 2013 )/( (Total Stockholders Equity (A: Jun. 2012 )+Total Stockholders Equity (A: Jun. 2013 ))/ count )
=191.016/( (187.295+366.872)/ 2 )
=191.016/277.0835
=68.94 %

Hillshire Brands Co's annualized ROE % for the quarter that ended in Jun. 2014 is calculated as

ROE %=Net Income (Q: Jun. 2014 )/( (Total Stockholders Equity (Q: Mar. 2014 )+Total Stockholders Equity (Q: Jun. 2014 ))/ count )
=79.488/( (434.523+468.832)/ 2 )
=79.488/451.6775
=17.60 %

* 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. 2014) net income data. ROE % is displayed in the 30-year financial page.


Hillshire Brands Co  (LTS:0Q8L) 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. 2014 )
=Net Income/Total Stockholders Equity
=79.488/451.6775
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(79.488 / 3132.416)*(3132.416 / 1911.5005)*(1911.5005 / 451.6775)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.54 %*1.6387*4.232
=ROA %*Equity Multiplier
=4.16 %*4.232
=17.60 %

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. 2014 )
=Net Income/Total Stockholders Equity
=79.488/451.6775
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (79.488 / 147.2) * (147.2 / 173.696) * (173.696 / 3132.416) * (3132.416 / 1911.5005) * (1911.5005 / 451.6775)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.54 * 0.8475 * 5.55 % * 1.6387 * 4.232
=17.60 %

Note: The net income data used here is four times the quarterly (Jun. 2014) net income data. The Revenue data used here is four times the quarterly (Jun. 2014) 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.


Hillshire Brands Co ROE % Related Terms

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


Hillshire Brands Co (LTS:0Q8L) Business Description

Traded in Other Exchanges
N/A
Address
Hillshire Brands Co was organized as a corporation in Baltimore, Maryland in 1941 as The C.D. Kenny Company, was renamed Sara Lee Corporation in 1985 and adopted its current name in June 2012. It is a manufacturer and marketer of food products. It provides meat-centric food solutions for the retail and foodservice markets. The Company's Brands' portfolio includes iconic brands such as Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Sara Lee frozen bakery and Chef Pierre pies, as well as artisanal brands Aidells and Gallo Salame. Its operations are organized around two business segments - Retail and Foodservice/Other. Retail sells a variety of packaged meat and frozen bakery products to retail customers in North America. Products include hot dogs and corn dogs, breakfast sausages, breakfast convenience items, including breakfast sandwiches and bowls, dinner sausages, premium deli and luncheon meats and cooked hams, as well as frozen pies, cakes, cheesecakes and other desserts. The primary raw materials for the segment's products include pork and beef, which are purchased almost entirely from third party suppliers and independent farmers, and poultry. The branded meat business is highly competitive, with an emphasis on product quality, innovation and value. New product innovations are a key component to its success. The Retail segment competes with other international, national, regional and local companies in each of the product categories. Foodservice/Other sells a variety of meat and bakery products to foodservice customers in North America. Products include hot dogs and corn dogs, breakfast sausages and sandwiches, dinner sausages, premium deli and luncheon meats, ham, beef and turkey as well as a variety of bakery products, including pastries, muffins, frozen pies, cakes and cheesecakes. The primary raw materials for Foodservice/Other's products include pork, beef and poultry and, to a lesser extent, wheat flour, sugar, corn syrup, cooking oils, butter, fruit and eggs, which are purchased from independent suppliers and farmers. The Foodservice/Other segment competes with other international, national, regional and local companies in each of its product categories. It considers major mass retailers and supermarket chains in the United States to be its most significant customers. The Company is subject to regulations administered by the U.S. Department of Agriculture and the Food and Drug Administration.

Hillshire Brands Co (LTS:0Q8L) Headlines

No Headlines