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Energy Transfer LP (Energy Transfer LP) ROE % : 15.21% (As of Dec. 2023)


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What is Energy Transfer LP ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Energy Transfer LP's annualized net income for the quarter that ended in Dec. 2023 was $5,308 Mil. Energy Transfer LP's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $34,903 Mil. Therefore, Energy Transfer LP's annualized ROE % for the quarter that ended in Dec. 2023 was 15.21%.

The historical rank and industry rank for Energy Transfer LP's ROE % or its related term are showing as below:

ET' s ROE % Range Over the Past 10 Years
Min: -3.2   Med: 20.02   Max: Negative Equity
Current: 11.61

During the past 13 years, Energy Transfer LP's highest ROE % was Negative Equity%. The lowest was -3.20%. And the median was 20.02%.

ET's ROE % is ranked better than
60.63% of 1016 companies
in the Oil & Gas industry
Industry Median: 7.79 vs ET: 11.61

Energy Transfer LP ROE % Historical Data

The historical data trend for Energy Transfer LP'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.

Energy Transfer LP ROE % Chart

Energy Transfer LP Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.56 -3.20 21.96 14.79 11.29

Energy Transfer LP Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial 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 14.03 13.46 10.93 7.01 15.21

Competitive Comparison of Energy Transfer LP's ROE %

For the Oil & Gas Midstream subindustry, Energy Transfer LP'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.


Energy Transfer LP's ROE % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Energy Transfer LP's ROE % distribution charts can be found below:

* The bar in red indicates where Energy Transfer LP's ROE % falls into.



Energy Transfer LP ROE % Calculation

Energy Transfer LP'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 )
=3935/( (33025+36682)/ 2 )
=3935/34853.5
=11.29 %

Energy Transfer LP'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 )
=5308/( (33124+36682)/ 2 )
=5308/34903
=15.21 %

* 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.


Energy Transfer LP  (NYSE:ET) 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
=5308/34903
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(5308 / 82128)*(82128 / 110634.5)*(110634.5 / 34903)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.46 %*0.7423*3.1698
=ROA %*Equity Multiplier
=4.8 %*3.1698
=15.21 %

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
=5308/34903
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (5308 / 6456) * (6456 / 8660) * (8660 / 82128) * (82128 / 110634.5) * (110634.5 / 34903)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8222 * 0.7455 * 10.54 % * 0.7423 * 3.1698
=15.21 %

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.


Energy Transfer LP ROE % Related Terms

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


Energy Transfer LP (Energy Transfer LP) Business Description

Traded in Other Exchanges
Address
8111 Westchester Drive, Suite 600, Dallas, TX, USA, 75225
Energy Transfer owns a large platform of crude oil, natural gas, and natural gas liquid assets primarily in Texas and the U.S. midcontinent region. It also has gathering and processing facilities, one of the largest fractionation facilities in the U.S., and fuel distribution. Energy Transfer also owns the Lake Charles gas liquefaction facility. It combined its publicly traded limited and general partnerships in October 2018.
Executives
Mccrea Marshall S Iii director, officer: See Remarks
Thomas P Mason officer: EVP and General Counsel 3738 OAK LAWN AVE, DALLAS TX 75219
Bradford D. Whitehurst officer: CFO 100 CONGRESS AVENUE, SUITE 450, AUSTIN TX 78701
Kelcy L Warren director, 10 percent owner
Richard D Brannon director C/O CH4 ENERGY SIX, LLC, 5128 APACHE PLUME ROAD, SUITE 300, FORT WORTH TX 76109
James M. Wright officer: EVP, GC & CCO 1300 MAIN STREET, HOUSTON TX 77002
Dylan Bramhall officer: EVP & Group CFO 8111 WESTCHESTER DRIVE, SUITE 600, DALLAS TX 75225
Michael K Grimm director 3141 HOOD STREET, SUITE 350, DALLAS TX 75219
Thomas E Long officer: Chief Financial Officer 370 17TH STREET, SUITE 2775, DENVER CO 80202
Matthew S. Ramsey director 6002 DEERWOOD, HOUSTON TX 77057
Ray C Davis director 5950 SHERRY LANE, SUITE 550, DALLAS TX 75225
Ray W Washburne director 47 HIGHLAND PARK VILLAGE, SUITE 200, DALLAS TX 75205
James Richard Perry director 1108 LAVACA, SUITE 110 #143, AUSTIN TX 78701
Troy Sturrock officer: SVP & Controller 1039 NORTH OAK CLIFF BOULEVARD, DALLAS TX 75208
Steven R. Anderson director 1818 MARKET STREET, SUITE 1500, PHILADELPHIA PA 19103