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Collins Foods (ASX:CKF) ROE % : 25.28% (As of Oct. 2023)


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What is Collins Foods ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Collins Foods's annualized net income for the quarter that ended in Oct. 2023 was A$101 Mil. Collins Foods's average Total Stockholders Equity over the quarter that ended in Oct. 2023 was A$399 Mil. Therefore, Collins Foods's annualized ROE % for the quarter that ended in Oct. 2023 was 25.28%.

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

ASX:CKF' s ROE % Range Over the Past 10 Years
Min: -5.71   Med: 9.99   Max: 16.13
Current: 13.11

During the past 12 years, Collins Foods's highest ROE % was 16.13%. The lowest was -5.71%. And the median was 9.99%.

ASX:CKF's ROE % is ranked better than
63.44% of 331 companies
in the Restaurants industry
Industry Median: 8.76 vs ASX:CKF: 13.11

Collins Foods ROE % Historical Data

The historical data trend for Collins Foods'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.

Collins Foods ROE % Chart

Collins Foods Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.44 8.83 9.14 14.49 3.28

Collins Foods Semi-Annual Data
Apr14 Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23
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 14.28 14.76 5.59 0.88 25.28

Competitive Comparison of Collins Foods's ROE %

For the Restaurants subindustry, Collins Foods'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.


Collins Foods's ROE % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Collins Foods's ROE % distribution charts can be found below:

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



Collins Foods ROE % Calculation

Collins Foods's annualized ROE % for the fiscal year that ended in Apr. 2023 is calculated as

ROE %=Net Income (A: Apr. 2023 )/( (Total Stockholders Equity (A: Apr. 2022 )+Total Stockholders Equity (A: Apr. 2023 ))/ count )
=12.746/( (393.527+384.498)/ 2 )
=12.746/389.0125
=3.28 %

Collins Foods's annualized ROE % for the quarter that ended in Oct. 2023 is calculated as

ROE %=Net Income (Q: Oct. 2023 )/( (Total Stockholders Equity (Q: Apr. 2023 )+Total Stockholders Equity (Q: Oct. 2023 ))/ count )
=100.902/( (384.498+413.862)/ 2 )
=100.902/399.18
=25.28 %

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


Collins Foods  (ASX:CKF) 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: Oct. 2023 )
=Net Income/Total Stockholders Equity
=100.902/399.18
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(100.902 / 1394.116)*(1394.116 / 1380.3805)*(1380.3805 / 399.18)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.24 %*1.01*3.458
=ROA %*Equity Multiplier
=7.31 %*3.458
=25.28 %

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: Oct. 2023 )
=Net Income/Total Stockholders Equity
=100.902/399.18
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (100.902 / 85.922) * (85.922 / 23.226) * (23.226 / 1394.116) * (1394.116 / 1380.3805) * (1380.3805 / 399.18)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.1743 * 3.6994 * 1.67 % * 1.01 * 3.458
=25.28 %

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


Collins Foods ROE % Related Terms

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Collins Foods (ASX:CKF) Business Description

Traded in Other Exchanges
Address
485 Kingsford Smith Drive, Level 3, KSD1, Hamilton, QLD, AUS, 4007
Collins Foods is an operator of quick service restaurants, or QSRs. It franchises restaurant brands from U.S.-listed Yum Brands, including KFC in Australia, Germany, and the Netherlands, as well as Taco Bell in Australia. Most of its revenue and earnings are generated in Australia, where Collins is the largest franchisee of KFC, ahead of Restaurant Brands New Zealand.In the Netherlands, Collins has signed a corporate franchise agreement, giving it more control over development and oversight of the Dutch franchisee network.Earnings growth is underpinned by its store network expansion, both new restaurants and acquisitions of existing sites. Competitive pricing is key to maintaining share in the QSR market, and the company has generally increased at or below consumer price index growth.

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