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Keurig Green Mountain (Keurig Green Mountain) ROE % : 15.99% (As of Dec. 2015)


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What is Keurig Green Mountain ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Keurig Green Mountain's annualized net income for the quarter that ended in Dec. 2015 was $418 Mil. Keurig Green Mountain's average Total Stockholders Equity over the quarter that ended in Dec. 2015 was $2,615 Mil. Therefore, Keurig Green Mountain's annualized ROE % for the quarter that ended in Dec. 2015 was 15.99%.

The historical rank and industry rank for Keurig Green Mountain's ROE % or its related term are showing as below:

GMCR's ROE % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 6.405
* Ranked among companies with meaningful ROE % only.

Keurig Green Mountain ROE % Historical Data

The historical data trend for Keurig Green Mountain'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.

Keurig Green Mountain ROE % Chart

Keurig Green Mountain Annual Data
Trend Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.28 17.38 19.74 19.58 16.16

Keurig Green Mountain Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 15.56 20.21 16.57 13.75 15.99

Competitive Comparison of Keurig Green Mountain's ROE %

For the Packaged Foods subindustry, Keurig Green Mountain'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.


Keurig Green Mountain's ROE % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Keurig Green Mountain's ROE % falls into.



Keurig Green Mountain ROE % Calculation

Keurig Green Mountain's annualized ROE % for the fiscal year that ended in Sep. 2015 is calculated as

ROE %=Net Income (A: Sep. 2015 )/( (Total Stockholders Equity (A: Sep. 2014 )+Total Stockholders Equity (A: Sep. 2015 ))/ count )
=498.275/( (3458.681+2709.358)/ 2 )
=498.275/3084.0195
=16.16 %

Keurig Green Mountain's annualized ROE % for the quarter that ended in Dec. 2015 is calculated as

ROE %=Net Income (Q: Dec. 2015 )/( (Total Stockholders Equity (Q: Sep. 2015 )+Total Stockholders Equity (Q: Dec. 2015 ))/ count )
=417.988/( (2709.358+2519.661)/ 2 )
=417.988/2614.5095
=15.99 %

* 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. 2015) net income data. ROE % is displayed in the 30-year financial page.


Keurig Green Mountain  (NAS:GMCR) 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. 2015 )
=Net Income/Total Stockholders Equity
=417.988/2614.5095
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(417.988 / 5033.684)*(5033.684 / 3966.515)*(3966.515 / 2614.5095)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.3 %*1.269*1.5171
=ROA %*Equity Multiplier
=10.53 %*1.5171
=15.99 %

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. 2015 )
=Net Income/Total Stockholders Equity
=417.988/2614.5095
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (417.988 / 635.728) * (635.728 / 643.252) * (643.252 / 5033.684) * (5033.684 / 3966.515) * (3966.515 / 2614.5095)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6575 * 0.9883 * 12.78 % * 1.269 * 1.5171
=15.99 %

Note: The net income data used here is four times the quarterly (Dec. 2015) net income data. The Revenue data used here is four times the quarterly (Dec. 2015) 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.


Keurig Green Mountain ROE % Related Terms

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


Keurig Green Mountain (Keurig Green Mountain) Business Description

Traded in Other Exchanges
N/A
Address
Keurig Green Mountain Inc is a Delaware Corporation formed in July 1993. The Company is engaged in the coffee and coffeemaker businesses in the United States and Canada. It sells Keurig Single Cup brewers and roast high-quality Arabica bean coffees including single-origin, Fair Trade Certified, certified organic, flavored, limited edition and proprietary blends offered in K-Cup and Vue packs for use with its Keurig Single Cup brewers. The Company also offers traditional whole bean and ground coffee in other package types including bags, fractional packages and cans. In addition, it produces and sells other specialty beverages in portion packs including hot apple cider, hot and iced teas, iced coffees, iced fruit brews, hot cocoa and other dairy-based beverages. The Company manages its operations through three business segments, the Specialty Coffee business unit (SCBU), the Keurig business unit (KBU) and the Canadian business unit (CBU). Due to this combination, the results of U.S. operations, formerly reported in the SCBU and KBU segments, are reported in the Domestic segment and the results of Canadian operations are in the "Canada" segment. The Domestic segment sells single cup brewers and accessories, and sources, produces and sells coffee, hot cocoa, teas and other beverages in portion packs and coffee in more traditional packaging including bags and fractional packs to retailers including supermarkets, department stores, mass merchandisers, club stores, and convenience stores; to restaurants, hospitality accounts, office coffee distributors, and partner brand owners; and to consumers through Company websites. The Canada segment sells single cup brewers, accessories, and sources, produces and sells coffee, teas and other beverages in portion packs and coffee in more traditional packaging including bags, cans and fractional packs under a variety of brands to retailers including supermarkets, department stores, mass merchandisers, club stores, through office coffee services to offices, convenience stores, restaurants, hospitality accounts, and to consumers through its website. The Company's competitors in the coffee marketplace include large national and international companies and numerous local and regional companies.
Executives
Coca Cola Co 10 percent owner ONE COCA COLA PLAZA, ATLANTA GA 30313
John D Hayes director AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285
Mackay A D David director
Robert Allan Steele director 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Jose Octavio Reyes director
Stephen L Gibbs officer: VP, Chief Accounting Officer C/O SCIENTIFIC GAMES CORPORATION, 1500 BLUEGRASS LAKES PARKWAY, ALPHARETTA, GA 30004
Susan S Kilsby director 33 COFFEE LANE, WATERBURY VT 05676
Norman H Wesley director 225 W WESTMINSTER, LAKE FOREST IL 60045
Brian P Kelley director, officer: CEO and President P.O. BOX 90608, AUSTIN TX 78709
Barbara D Carlini director C/O GREEN MOUNTAIN COFFEE ROASTERS INC 33 COFFEE LANE WATERBURY VT 05676
Robert Paul Ostryniec officer: Chief Product Supply Officer 33 COFFEE LANE, WATERBURY VT 05676
Peter G Leemputte officer: Chief Financial Officer CHICAGO TITLE CORP, 171 N CLARK ST, CHICAGO IL 80601
Michael J Mardy director
Frances G Rathke officer: Chief Financial Officer C/O GREEN MOUNTAIN COFFEE ROASTERS, INC., 33 COFFEE LANE, WATERBURY VT 05676
Sonia Galindo officer: Corporate Secretary C/O ROSETTA STONE, 1621 NORTH KENT STREET, SUITE 1200, ARLINGTON VA 22209

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