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Crane Co (Crane Co) ROE %

: 14.96% (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. Crane Co's annualized net income for the quarter that ended in Dec. 2023 was $198 Mil. Crane Co's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,321 Mil. Therefore, Crane Co's annualized ROE % for the quarter that ended in Dec. 2023 was 14.96%.

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

CR' s ROE % Range Over the Past 10 Years
Min: 8.89   Med: 16.36   Max: 25.91
Current: 16.42

During the past 13 years, Crane Co's highest ROE % was 25.91%. The lowest was 8.89%. And the median was 16.36%.

CR's ROE % is ranked better than
81.81% of 2952 companies
in the Industrial Products industry
Industry Median: 7.14 vs CR: 16.42

Crane Co ROE % Historical Data

The historical data trend for Crane 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.

Crane 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 8.89 12.06 25.91 21.49 15.70

Crane 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 21.54 21.59 11.22 17.53 14.96

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Crane 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.


Crane Co ROE % Distribution

For the Industrial Products industry and Industrials sector, Crane Co's ROE % distribution charts can be found below:

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



Crane Co ROE % Calculation

Crane 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 )
=255.9/( (1901.4+1357.8)/ 2 )
=255.9/1629.6
=15.70 %

Crane 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 )
=197.6/( (1284.1+1357.8)/ 2 )
=197.6/1320.95
=14.96 %

* 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.


Crane Co  (NYSE:CR) 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
=197.6/1320.95
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(197.6 / 2131.6)*(2131.6 / 2262.75)*(2262.75 / 1320.95)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.27 %*0.942*1.713
=ROA %*Equity Multiplier
=8.73 %*1.713
=14.96 %

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
=197.6/1320.95
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (197.6 / 256.4) * (256.4 / 267.6) * (267.6 / 2131.6) * (2131.6 / 2262.75) * (2262.75 / 1320.95)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7707 * 0.9581 * 12.55 % * 0.942 * 1.713
=14.96 %

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.


Crane Co ROE % Related Terms

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


Crane Co (Crane Co) Business Description

Traded in Other Exchanges
Address
100 First Stamford Place, Stamford, CT, USA, 06902
Crane is a diversified industrial firm that manufactures a broad range of products, including valves, pumps, aerospace components, and fiberglass-reinforced plastic panels. Its business is organized into three segments: aerospace and electronics, process flow technologies, and engineered materials. Crane generated approximately $2 billion in revenue in 2022.
Executives
Max H Mitchell officer: President & CEO CRANE CO, 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Richard A Maue director, officer: Exec. V.P., CFO & PAO C/O PAXAR CORPORATION, 105 CORPORATE PARK DRIVE, WHITE PLAINS NY 10604
Marijane V. Papanikolaou officer: V.P, Controller & CAO 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Jennifer Kartono officer: SVP, CHRO 950 WINTER STREET 4TH FLOOR, WALTHAM MA 02451
Fund Crane 10 percent owner C/O CRANE CO, 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Paul Gerard Igoe officer: SVP, General Counsel & Sec. LYDALL, INC., ONE COLONIAL ROAD, MANCHESTER CT 06042
Sanjay Kapoor director C/O SPIRIT AEROSYSTEMS HOLDINGS, INC., 3801 SOUTH OLIVER STREET, WICHITA KS 67210
William K Grogan director 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Bianca B. Shardelow officer: VP, Controller & CAO 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Cristen L Kogl director 3 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Tamara S. Polmanteer officer: Exec. Vice President & CHRO 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Ronald Carter Lindsay director 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Tullis James L L director 100 FIRST STAMFORD PLACE, STAMFORD CT 06907
Charles G Mcclure director 55 CABOT PL, BLOOMFIELD HILLS MI 48304
Alejandro Alcala officer: Executive Vice President 100 FIRST STAMFORD PLACE, STAMFORD CT 06902

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