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IDEX (IEX) ROE %

: 12.54% (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. IDEX's annualized net income for the quarter that ended in Dec. 2023 was $434 Mil. IDEX's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $3,464 Mil. Therefore, IDEX's annualized ROE % for the quarter that ended in Dec. 2023 was 12.54%.

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

IEX' s ROE % Range Over the Past 10 Years
Min: 15.73   Med: 18.79   Max: 21.16
Current: 18.09

During the past 13 years, IDEX's highest ROE % was 21.16%. The lowest was 15.73%. And the median was 18.79%.

IEX's ROE % is ranked better than
84.89% of 2952 companies
in the Industrial Products industry
Industry Median: 7.14 vs IEX: 18.09

IDEX ROE % Historical Data

The historical data trend for IDEX'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.

IDEX 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 19.99 15.73 16.82 20.09 18.12

IDEX 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 17.80 17.84 17.04 25.10 12.54

Competitive Comparison

For the Specialty Industrial Machinery subindustry, IDEX'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.


IDEX ROE % Distribution

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

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



IDEX ROE % Calculation

IDEX'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 )
=596.1/( (3039.3+3541.4)/ 2 )
=596.1/3290.35
=18.12 %

IDEX'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 )
=434.4/( (3387.1+3541.4)/ 2 )
=434.4/3464.25
=12.54 %

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


IDEX  (NYSE:IEX) 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
=434.4/3464.25
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(434.4 / 3155.6)*(3155.6 / 5767.4)*(5767.4 / 3464.25)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.77 %*0.5471*1.6648
=ROA %*Equity Multiplier
=7.53 %*1.6648
=12.54 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=434.4/3464.25
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (434.4 / 560.8) * (560.8 / 652.8) * (652.8 / 3155.6) * (3155.6 / 5767.4) * (5767.4 / 3464.25)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7746 * 0.8591 * 20.69 % * 0.5471 * 1.6648
=12.54 %

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.


IDEX ROE % Related Terms

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


IDEX (IEX) Business Description

Traded in Other Exchanges
Address
3100 Sanders Road, Suite 301, Northbrook, IL, USA, 60062
Idex manufactures pumps, flow meters, valves, and fluidic systems for customers in a variety of end markets, including industrial, fire and safety, life science, and water. The firm's business is organized into three segments: fluid and metering technologies, health and science technologies, and fire and safety and diversified products. Based in Lake Forest, Illinois, Idex has manufacturing operations in over 20 countries and has over 7,000 employees. The company generated $3.2 billion in revenue and $763 million in adjusted operating income in 2022.
Executives
Alejandro Quiroz director 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Roopa Unnikrishnan officer: SVP, Strategy&Corp Development 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Marc Uleman officer: Senior VP, Group Executive HST 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
William K Grogan officer: SVP - Chief Financial Officer 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Melissa Aquino officer: Former SVP, Group Exec FMT&FSD 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Livingston Satterthwaite director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Eric D Ashleman officer: SVP - Chief Operating Officer 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Stanfield Paris Watts director 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Carl R Christenson director C/O ALTRA INDUSTRIAL MOTION INC., 300 GRANITE STREET, BRAINTREE MA 02184
Katrina L Helmkamp director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
William M Cook director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Mark A Buthman director P O BOX 619100, DALLAS TX 752619100
Lakecia N Gunter director 3100 SANDER ROAD, SUITE 301, NORTHBROOK IL 60062
Mark A Beck director 2200 PENNSYLVANIA AVENUE, NW, SUITE 800W, WASHINGTON DC 20037
David C Parry director 155 HARLEM AVE., GLENVIEW IL 60025

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