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Hill-Rom Holdings (Hill-Rom Holdings) ROE % : 11.54% (As of Sep. 2021)


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What is Hill-Rom Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hill-Rom Holdings's annualized net income for the quarter that ended in Sep. 2021 was $214 Mil. Hill-Rom Holdings's average Total Stockholders Equity over the quarter that ended in Sep. 2021 was $1,850 Mil. Therefore, Hill-Rom Holdings's annualized ROE % for the quarter that ended in Sep. 2021 was 11.54%.

The historical rank and industry rank for Hill-Rom Holdings's ROE % or its related term are showing as below:

HRC' s ROE % Range Over the Past 10 Years
Min: 4.88   Med: 11.51   Max: 16.97
Current: 13.76

During the past 13 years, Hill-Rom Holdings's highest ROE % was 16.97%. The lowest was 4.88%. And the median was 11.51%.

HRC's ROE % is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 0.31 vs HRC: 13.76

Hill-Rom Holdings ROE % Historical Data

The historical data trend for Hill-Rom Holdings'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.

Hill-Rom Holdings ROE % Chart

Hill-Rom Holdings Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.33 16.97 9.54 13.52 13.78

Hill-Rom Holdings Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 10.04 13.48 19.34 10.75 11.54

Competitive Comparison of Hill-Rom Holdings's ROE %

For the Medical Instruments & Supplies subindustry, Hill-Rom Holdings'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.


Hill-Rom Holdings's ROE % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Hill-Rom Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Hill-Rom Holdings's ROE % falls into.



Hill-Rom Holdings ROE % Calculation

Hill-Rom Holdings's annualized ROE % for the fiscal year that ended in Sep. 2021 is calculated as

ROE %=Net Income (A: Sep. 2021 )/( (Total Stockholders Equity (A: Sep. 2020 )+Total Stockholders Equity (A: Sep. 2021 ))/ count )
=248.5/( (1726.1+1879.7)/ 2 )
=248.5/1802.9
=13.78 %

Hill-Rom Holdings's annualized ROE % for the quarter that ended in Sep. 2021 is calculated as

ROE %=Net Income (Q: Sep. 2021 )/( (Total Stockholders Equity (Q: Jun. 2021 )+Total Stockholders Equity (Q: Sep. 2021 ))/ count )
=213.6/( (1821+1879.7)/ 2 )
=213.6/1850.35
=11.54 %

* 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. 2021) net income data. ROE % is displayed in the 30-year financial page.


Hill-Rom Holdings  (NYSE:HRC) 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. 2021 )
=Net Income/Total Stockholders Equity
=213.6/1850.35
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(213.6 / 3191.6)*(3191.6 / 4785.9)*(4785.9 / 1850.35)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.69 %*0.6669*2.5865
=ROA %*Equity Multiplier
=4.46 %*2.5865
=11.54 %

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. 2021 )
=Net Income/Total Stockholders Equity
=213.6/1850.35
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (213.6 / 257.6) * (257.6 / 485.6) * (485.6 / 3191.6) * (3191.6 / 4785.9) * (4785.9 / 1850.35)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8292 * 0.5305 * 15.21 % * 0.6669 * 2.5865
=11.54 %

Note: The net income data used here is four times the quarterly (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) 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.


Hill-Rom Holdings ROE % Related Terms

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


Hill-Rom Holdings (Hill-Rom Holdings) Business Description

Traded in Other Exchanges
N/A
Address
130 East Randolph Street, Suite 1000, Chicago, IL, USA, 60601
Hill-Rom Holdings Inc is a global provider of hospital equipment and medical supplies, including hospital beds for high- and low-acuity settings. Hill-Rom reports financial data across three operating segments: patient support systems (50% of fiscal 2018 sales), front-line care (34%), and surgical solutions (16%). The firm has significant operations internationally, with roughly 30% of revenue derived from international sources and the remaining 70% from its U.S. business.
Executives
Mary Kay Ladone officer: SVP, Corp. Dev., Strat. & IR 130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601
Deborah Rasin officer: SVP, Chief Legal Officer TWO PRUDENTIAL PLAZA, SUITE 4100, CHICAGO IL 60601
Paul Sherwood Johnson officer: SVP & Pres. - PSS Acute Care TWO PRUDENTIAL PLAZA 180 NORTH STETSON AVENUE, SUITE 4100 CHICAGO IL 60601
Andreas G Frank officer: SVP, Pres. Front Line Care C/O DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Richard M Wagner officer: Corporate Controller 221 WEST PHILADELPHIA STREET, SUITE 60W, YORK PA 17401-2991
Amy M. Dodrill officer: President - Surgical Solutions 130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601
Gary Lee Ellis director THE TORO COMPANY, 8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Mary Garrett director ETHAN ALLEN DRIVE, DANBURY CT 06811
Gregory J. Moore director 130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601
William Kucheman director C/O DAN DUGAN, FINANCIAL PERSPECTIVES, 3025 HARBOR LN., SUITE 200, PLYMOUTH MN 55447
James R Giertz director
Ronald A Malone director 3 HUNTINGTON QUADRANGLE, SUITE 200S, MELVILLE NY 11747
Felicia F Norwood director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
William G Dempsey director C/O LANDAUER, INC., 2 SCIENCE ROAD, GLENWOOD IL 60425
Nancy M Schlichting director 200 WILMOT ROAD, DEERFIELD IL 60015