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Domain Holdings Australia (ASX:DHG) ROE % : 4.46% (As of Dec. 2023)


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What is Domain Holdings Australia ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Domain Holdings Australia's annualized net income for the quarter that ended in Dec. 2023 was A$48.7 Mil. Domain Holdings Australia's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was A$1,092.3 Mil. Therefore, Domain Holdings Australia's annualized ROE % for the quarter that ended in Dec. 2023 was 4.46%.

The historical rank and industry rank for Domain Holdings Australia's ROE % or its related term are showing as below:

ASX:DHG' s ROE % Range Over the Past 10 Years
Min: -22.08   Med: 0.96   Max: 3.7
Current: 3.33

During the past 6 years, Domain Holdings Australia's highest ROE % was 3.70%. The lowest was -22.08%. And the median was 0.96%.

ASX:DHG's ROE % is ranked better than
57.73% of 556 companies
in the Interactive Media industry
Industry Median: -0.14 vs ASX:DHG: 3.33

Domain Holdings Australia ROE % Historical Data

The historical data trend for Domain Holdings Australia'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.

Domain Holdings Australia ROE % Chart

Domain Holdings Australia Annual Data
Trend Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROE %
Get a 7-Day Free Trial -11.08 -22.08 3.70 3.42 2.38

Domain Holdings Australia Semi-Annual Data
Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.16 3.08 2.57 2.19 4.46

Competitive Comparison of Domain Holdings Australia's ROE %

For the Internet Content & Information subindustry, Domain Holdings Australia'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.


Domain Holdings Australia's ROE % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Domain Holdings Australia's ROE % distribution charts can be found below:

* The bar in red indicates where Domain Holdings Australia's ROE % falls into.



Domain Holdings Australia ROE % Calculation

Domain Holdings Australia's annualized ROE % for the fiscal year that ended in Jun. 2023 is calculated as

ROE %=Net Income (A: Jun. 2023 )/( (Total Stockholders Equity (A: Jun. 2022 )+Total Stockholders Equity (A: Jun. 2023 ))/ count )
=26.098/( (1105.051+1092.27)/ 2 )
=26.098/1098.6605
=2.38 %

Domain Holdings Australia's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=48.714/( (1092.27+1092.415)/ 2 )
=48.714/1092.3425
=4.46 %

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


Domain Holdings Australia  (ASX:DHG) 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. 2023 )
=Net Income/Total Stockholders Equity
=48.714/1092.3425
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(48.714 / 404.232)*(404.232 / 1483.0065)*(1483.0065 / 1092.3425)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.05 %*0.2726*1.3576
=ROA %*Equity Multiplier
=3.28 %*1.3576
=4.46 %

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. 2023 )
=Net Income/Total Stockholders Equity
=48.714/1092.3425
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (48.714 / 78.952) * (78.952 / 94.694) * (94.694 / 404.232) * (404.232 / 1483.0065) * (1483.0065 / 1092.3425)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.617 * 0.8338 * 23.43 % * 0.2726 * 1.3576
=4.46 %

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


Domain Holdings Australia ROE % Related Terms

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


Domain Holdings Australia (ASX:DHG) Business Description

Traded in Other Exchanges
N/A
Address
100 Harris Street, Level 5, Pyrmont, Sydney, NSW, AUS, 2009
Domain is a technology company operating in the Australian real estate sector. Domain's primary business is a digital listings platform for residential real estate, www.domain.com.au, which is the second-largest residential real estate listings platform in Australia, after www.realestate.com.au, which is owned by REA Group. Domain is majority-owned by media company Nine Entertainment, while REA is majority-owned by rival media company News Corp. Domain's other businesses include a digital listings platform for commercial real estate, solutions for developers and agents, and print advertising.

Domain Holdings Australia (ASX:DHG) Headlines