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Avon Products (Avon Products) ROE % : 0.00% (As of Mar. 2023)


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What is Avon Products ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Avon Products's annualized net income for the quarter that ended in Mar. 2023 was $-480 Mil. Avon Products's average Total Stockholders Equity over the quarter that ended in Mar. 2023 was $-1,307 Mil. Therefore, Avon Products's annualized ROE % for the quarter that ended in Mar. 2023 was N/A%.

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

During the past 13 years, Avon Products's highest ROE % was Negative Equity%. The lowest was -69.85%. And the median was -5.49%.

AVP's ROE % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 6.375
* Ranked among companies with meaningful ROE % only.

Avon Products ROE % Historical Data

The historical data trend for Avon Products'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.

Avon Products ROE % Chart

Avon Products Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
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Avon Products Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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Competitive Comparison of Avon Products's ROE %

For the Household & Personal Products subindustry, Avon Products'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.


Avon Products's ROE % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Avon Products's ROE % falls into.



Avon Products ROE % Calculation

Avon Products'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 )
=-428.1/( (-858.5+-1244.7)/ 2 )
=-428.1/-1051.6
=N/A %

Avon Products's annualized ROE % for the quarter that ended in Mar. 2023 is calculated as

ROE %=Net Income (Q: Mar. 2023 )/( (Total Stockholders Equity (Q: Dec. 2022 )+Total Stockholders Equity (Q: Mar. 2023 ))/ count )
=-480/( (-1244.7+-1368.9)/ 2 )
=-480/-1306.8
=N/A %

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

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.


Avon Products  (NYSE:AVP) 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: Mar. 2023 )
=Net Income/Total Stockholders Equity
=-480/-1306.8
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-480 / 2362)*(2362 / 2118.05)*(2118.05 / -1306.8)
=Net Margin %*Asset Turnover*Equity Multiplier
=-20.32 %*1.1152*N/A
=ROA %*Equity Multiplier
=-22.66 %*N/A
=N/A %

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: Mar. 2023 )
=Net Income/Total Stockholders Equity
=-480/-1306.8
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-480 / -322) * (-322 / -138.8) * (-138.8 / 2362) * (2362 / 2118.05) * (2118.05 / -1306.8)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.4907 * 2.3199 * -5.88 % * 1.1152 * N/A
=N/A %

Note: The net income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


Avon Products ROE % Related Terms

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


Avon Products (Avon Products) Business Description

Traded in Other Exchanges
N/A
Address
Nunn Mills Road, Lancaster House, Northampton, GBR, NN1 5PA
Avon Products Inc is a firm which manufactures and sells beauty and related products. Avon's product mix consists of beauty (cosmetics, fragrances, and skin care), fashion (accessories and apparel), and home (home products and gifts). Generating, a majority of its revenue from Beauty. The company's geographic operating segments includes Avon International and Avon Latin America.
Executives
Gustavo Arnal officer: Executive Vice President, CFO C/O AVON PRODUCTS, INC., 1 AVON PLACE, SUFFERN NY 10901
Fernandez Calero Miguel Angel officer: Global President 800 W. OLYMPIC BLVD. SUITE 406, LOS ANGELES CA 90015
James A Mitarotonda director 888 SEVENTH AVENUE 17TH FL, NEW YORK NY 10019
Chan Galbato director 191 E NORTH AVENUE, CAROL STREAM IL 60188
Nancy Killefer director 3170 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Helen Mccluskey director 2211 REDDING ROAD, FAIRFIELD CT 06430
Lenard Tessler director C/O ALBERTSONS COMPANIES, INC., 250 E. PARKCENTER BLVD., BOISE ID 83706
W Don Cornwell director
Susan J Kropf director C/O AVON PRODUCTS INC, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105-0196
Cathy D Ross director 901 44TH STREET SE, GRAND RAPIDS MI 49508
James E Thompson officer: Senior Vice President 250 EAST FIFTH STREET, CINCINNATI OH 45202
Charles H Noski director ONE PICKWICK PLAZA, GREENWICH CT 06830
Steven F Mayer director 11812 SAN VICENTE BLVD. # 300, LOS ANGELES CA 90049
Sherilyn S Mccoy director, officer: CEO JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
James S Scully officer: EVP, COO C/O J. CREW GROUP, INC., 770 BROADWAY, NEW YORK NY 10003

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