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Capital One Financial (NYSE:COF) ROE %

: 13.23% (As of Sep. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Capital One Financial's annualized net income for the quarter that ended in Sep. 2023 was $7,160 Mil. Capital One Financial's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was $54,114 Mil. Therefore, Capital One Financial's annualized ROE % for the quarter that ended in Sep. 2023 was 13.23%.

The historical rank and industry rank for Capital One Financial's ROE % or its related term are showing as below:

COF' s ROE % Range Over the Past 10 Years
Min: 4.12   Med: 10.08   Max: 20.44
Current: 8.93

During the past 13 years, Capital One Financial's highest ROE % was 20.44%. The lowest was 4.12%. And the median was 10.08%.

COF's ROE % is ranked better than
59.34% of 519 companies
in the Credit Services industry
Industry Median: 6.82 vs COF: 8.93

Capital One Financial ROE % Historical Data

The historical data trend for Capital One Financial'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.

Capital One Financial 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 10.11 4.59 20.44 12.96 8.83

Capital One Financial 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 9.53 7.16 10.48 13.23 5.05

Competitive Comparison

For the Credit Services subindustry, Capital One Financial'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.


Capital One Financial ROE % Distribution

For the Credit Services industry and Financial Services sector, Capital One Financial's ROE % distribution charts can be found below:

* The bar in red indicates where Capital One Financial's ROE % falls into.



Capital One Financial ROE % Calculation

Capital One Financial'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 )
=7360/( (61029+52582)/ 2 )
=7360/56805.5
=12.96 %

Capital One Financial's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=7160/( (54559+53668)/ 2 )
=7160/54113.5
=13.23 %

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


Capital One Financial  (NYSE:COF) 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: Sep. 2023 )
=Net Income/Total Stockholders Equity
=7160/54113.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(7160 / 37464)*(37464 / 469617.5)*(469617.5 / 54113.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=19.11 %*0.0798*8.6784
=ROA %*Equity Multiplier
=1.52 %*8.6784
=13.23 %

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: Sep. 2023 )
=Net Income/Total Stockholders Equity
=7160/54113.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (7160 / 8888) * (8888 / 37464) * (37464 / 469617.5) * (469617.5 / 54113.5)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.8056 * 23.72 % * 0.0798 * 8.6784
=13.23 %

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


Capital One Financial ROE % Related Terms

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


Capital One Financial (NYSE:COF) Business Description

Address
1680 Capital One Drive, McLean, VA, USA, 22102
Capital One is a diversified financial services holding company headquartered in McLean, Virginia. Originally a spinoff of Signet Financial's credit card division in 1994, the company is now primarily involved in credit card lending, auto loans, and commercial lending.
Executives
Laprade,iii Frank G. officer: Chief Enterprise Srvcs Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Robert M. Alexander officer: Chief Information Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Ann F Hackett director
Richard D Fairbank director, officer: Chairman, CEO and President 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Kara West officer: Chief Audit Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Kevin S. Borgmann officer: Chief Risk Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Mark Daniel Mouadeb officer: President, U.S. Card 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Neal Blinde officer: EC, Commercial Banking 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Timothy P Golden officer: Controller 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Michael Zamsky officer: Chief Consumer Credit Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Ravi Raghu officer: Pres, Software, Intl & Sm Bus 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Sheldon Hall officer: Chief Risk Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Kaitlin Haggerty officer: Chief Human Resources Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Peter E Raskind director NATIONAL CITY CORP, 1900 EAST NINTH STREET, CLEVELAND OH 44114-3484
Matthew W Cooper officer: General Counsel 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102