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Boise Cascade Co (Boise Cascade Co) ROE %

: 17.33% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Boise Cascade Co's annualized net income for the quarter that ended in Dec. 2023 was $390 Mil. Boise Cascade Co's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $2,252 Mil. Therefore, Boise Cascade Co's annualized ROE % for the quarter that ended in Dec. 2023 was 17.33%.

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

BCC' s ROE % Range Over the Past 10 Years
Min: 3.04   Med: 15.08   Max: 64.67
Current: 22.24

During the past 13 years, Boise Cascade Co's highest ROE % was 64.67%. The lowest was 3.04%. And the median was 15.08%.

BCC's ROE % is ranked better than
90.26% of 380 companies
in the Building Materials industry
Industry Median: 6.24 vs BCC: 22.24

Boise Cascade Co ROE % Historical Data

The historical data trend for Boise Cascade 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.

Boise Cascade Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.78 22.55 64.67 50.29 22.74

Boise Cascade Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % 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 Premium Member Only Premium Member Only Premium Member Only 23.23 18.41 27.14 25.57 17.33

Competitive Comparison

For the Building Materials subindustry, Boise Cascade 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.


Boise Cascade Co ROE % Distribution

For the Building Materials industry and Basic Materials sector, Boise Cascade Co's ROE % distribution charts can be found below:

* The bar in red indicates where Boise Cascade Co's ROE % falls into.



Boise Cascade Co ROE % Calculation

Boise Cascade Co's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=483.656/( (2057.975+2195.664)/ 2 )
=483.656/2126.8195
=22.74 %

Boise Cascade Co's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=390.14/( (2307.595+2195.664)/ 2 )
=390.14/2251.6295
=17.33 %

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


Boise Cascade Co  (NYSE:BCC) 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
=390.14/2251.6295
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(390.14 / 6577.024)*(6577.024 / 3550.5395)*(3550.5395 / 2251.6295)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.93 %*1.8524*1.5769
=ROA %*Equity Multiplier
=10.98 %*1.5769
=17.33 %

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
=390.14/2251.6295
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (390.14 / 508.804) * (508.804 / 484.54) * (484.54 / 6577.024) * (6577.024 / 3550.5395) * (3550.5395 / 2251.6295)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7668 * 1.0501 * 7.37 % * 1.8524 * 1.5769
=17.33 %

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


Boise Cascade Co ROE % Related Terms

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


Boise Cascade Co (Boise Cascade Co) Business Description

Traded in Other Exchanges
Address
1111 West Jefferson Street, Suite 300, Boise, ID, USA, 83702-5389
Boise Cascade Co is a producer of engineered wood products (EWP) and plywood. The firm operates in two segments namely Wood Products and Building Materials Distribution. Wood Products segment manufactures EWP, consisting of laminated veneer lumber (LVL), I-joists, and laminated beams. The Building Materials Distribution segment is engaged in the wholesale of building materials. It distributes products such as plywood, OSB, and lumber items such as siding, doors, metal products, insulation, and roofing, EWP and others. The company generates a majority of its revenue from the Building Material Distribution segment.
Executives
Sue Ying Taylor director PO BOX 50, BOISE ID 83728-0050
Steven C Cooper director PO BOX 2910, TACOMA WA 98401-2910
Dean Michael Brown officer: EVP, Wood Products PO BOX 50, BOISE ID 83728-0050
Jeffrey Robert Strom officer: EVP, BMD PO BOX 50, BOISE ID 83728-0050
Kristopher J Matula director BUCKEYE TECHNOLOGIES INC, 1001 TILLMAN STREET, MEMPHIS TN 38112
Mack L Hogans director WEYERHAEUSER CO, P O B 9777, FEDERAL WAY WA 98063
Thomas E Carlile director, officer: Chief Executive Officer BOISE CASCADE COMPANY, P.O. BOX 50, BOISE ID 83728
Jill Twedt officer: VP, General Counsel & Corp Sec PO BOX 50, BOISE ID 83728-0050
Kelly E. Hibbs officer: VP and Controller C/O BOISE CASCADE, L.L.C., 1111 WEST JEFFERSON STREET, SUITE 300, BOISE ID 83702-5389
Amy Humphreys director PO BOX 50, BOISE ID 83728-0050
Craig O Dawson director PO BOX 50, BOISE ID 83728-0050
Wayne M Rancourt officer: SVP, CFO and Treasurer 1111 WEST JEFFERSON STREET, SUITE 300, P O BOX 50, BOISE ID 83728
Nick Stokes officer: EVP, BMD C/O BOISE CASCADE COMPANY, 1111 W. JEFFERSON ST., STE. 300, BOISE ID 83702
Thomas Kevin Corrick officer: EVP, Wood Products C/O BOISE CASCADE, L.L.C., 1111 W. JEFFERSON ST., STE 300, BOISE ID 83702-5389
Nate Jorgensen officer: COO PO BOX 50, BOISE ID 83728-0050

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