Silk Logistics Holdings (ASX:SLH) ROE % : 15.51% (As of Dec. 2023)

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What is Silk Logistics Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Silk Logistics Holdings's annualized net income for the quarter that ended in Dec. 2023 was A$12.4 Mil. Silk Logistics Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was A$79.6 Mil. Therefore, Silk Logistics Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 15.51%.

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

ASX:SLH' s ROE % Range Over the Past 10 Years
Min: 17.87 Med: 21.51 Max: 23.05
Current: 17.87

During the past 2 years, Silk Logistics Holdings's highest ROE % was 23.05%. The lowest was 17.87%. And the median was 21.51%.

ASX:SLH's ROE % is ranked better than
77.37% of 950 companies
in the Transportation industry
Industry Median: 8.435 vs ASX:SLH: 17.87

Silk Logistics Holdings ROE % Historical Data

The historical data trend for Silk Logistics Holdings'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.

Silk Logistics Holdings ROE % Chart

Silk Logistics Holdings Annual Data

Trend

Jun22

Jun23

ROE %

19.97

23.05

Silk Logistics Holdings Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23
ROE %	Get a 7-Day Free Trial			14.85	32.79	25.50	20.61	15.51

Competitive Comparison of Silk Logistics Holdings's ROE %

For the Integrated Freight & Logistics subindustry, Silk Logistics Holdings'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.

Silk Logistics Holdings's ROE % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Silk Logistics Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Silk Logistics Holdings's ROE % falls into.

Silk Logistics Holdings ROE % Calculation

Silk Logistics Holdings'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 )
	=	16.402	/	( (66.887	+	75.407)	/ 2 )
	=	16.402	/	71.147
	=	23.05 %

Silk Logistics Holdings'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 )
	=	12.352	/	( (75.407	+	83.878)	/ 2 )
	=	12.352	/	79.6425
	=	15.51 %

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.

Silk Logistics Holdings (ASX:SLH) 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
=	12.352	/	79.6425
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(12.352 / 553.012)	*	(553.012 / 404.208)	*	(404.208 / 79.6425)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	2.23 %	*	1.3681	*	5.0753
=	ROA %	*	Equity Multiplier
=	3.05 %	*	5.0753
=	15.51 %

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
=	12.352	/	79.6425
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(12.352 / 16.168)	*	(16.168 / 31.922)	*	(31.922 / 553.012)	*	(553.012 / 404.208)	*	(404.208 / 79.6425)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.764	*	0.5065	*	5.77 %	*	1.3681	*	5.0753
=	15.51 %

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.

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.

Silk Logistics Holdings ROE % Related Terms

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Silk Logistics Holdings (ASX:SLH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Silk Logistics Holdings Ltd (ASX:SLH) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

850 Lorimer Street, Unit 3, Port Melbourne, Melbourne, VIC, AUS, 3207

Website

https://www.silklogistics.com.au

Silk Logistics Holdings Ltd operates in the Australian logistics industry, delivering port-to-door, technology-enabled contract or third-party logistics and time certain Port Logistics services. The business provides these services to clients in several key industries, including, but not limited to FMCG, light industrial, food, specialised retail, and containerised agriculture. The company provides a one-stop shop for integrated port-to-door logistics, providing services in wharf cartage, warehousing, and domestic distribution, through its trading brands Silk Contract Logistics and Rocke Brothers. Its segment includes Port and Contract logistics out of which it generates a majority of its revenue from the Port logistics segment.