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HD Supply Holdings (HD Supply Holdings) ROE % : 285.76% (As of Oct. 2020)


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What is HD Supply Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. HD Supply Holdings's annualized net income for the quarter that ended in Oct. 2020 was $6,433 Mil. HD Supply Holdings's average Total Stockholders Equity over the quarter that ended in Oct. 2020 was $2,251 Mil. Therefore, HD Supply Holdings's annualized ROE % for the quarter that ended in Oct. 2020 was 285.76%.

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

HDS' s ROE % Range Over the Past 10 Years
Min: -96   Med: 32.25   Max: 8785.07
Current: 106.76

During the past 12 years, HD Supply Holdings's highest ROE % was 8,785.07%. The lowest was -96.00%. And the median was 32.25%.

HDS's ROE % is not ranked
in the Industrial Distribution industry.
Industry Median: 10.43 vs HDS: 106.76

HD Supply Holdings ROE % Historical Data

The historical data trend for HD Supply 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.

HD Supply Holdings ROE % Chart

HD Supply Holdings Annual Data
Trend Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Equity 23.00 79.97 28.69 34.33

HD Supply Holdings Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
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 38.25 23.37 20.83 35.37 285.76

Competitive Comparison of HD Supply Holdings's ROE %

For the Industrial Distribution subindustry, HD Supply 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.


HD Supply Holdings's ROE % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, HD Supply Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where HD Supply Holdings's ROE % falls into.



HD Supply Holdings ROE % Calculation

HD Supply Holdings's annualized ROE % for the fiscal year that ended in Jan. 2020 is calculated as

ROE %=Net Income (A: Jan. 2020 )/( (Total Stockholders Equity (A: Jan. 2019 )+Total Stockholders Equity (A: Jan. 2020 ))/ count )
=452/( (1281+1352)/ 2 )
=452/1316.5
=34.33 %

HD Supply Holdings's annualized ROE % for the quarter that ended in Oct. 2020 is calculated as

ROE %=Net Income (Q: Oct. 2020 )/( (Total Stockholders Equity (Q: Jul. 2020 )+Total Stockholders Equity (Q: Oct. 2020 ))/ count )
=6432.8/( (1550+2952.3)/ 2 )
=6432.8/2251.15
=285.76 %

* 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 (Oct. 2020) net income data. ROE % is displayed in the 30-year financial page.


HD Supply Holdings  (NAS:HDS) 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: Oct. 2020 )
=Net Income/Total Stockholders Equity
=6432.8/2251.15
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(6432.8 / 3310)*(3310 / 5047.25)*(5047.25 / 2251.15)
=Net Margin %*Asset Turnover*Equity Multiplier
=194.34 %*0.6558*2.2421
=ROA %*Equity Multiplier
=127.45 %*2.2421
=285.76 %

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: Oct. 2020 )
=Net Income/Total Stockholders Equity
=6432.8/2251.15
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (6432.8 / 199.6) * (199.6 / 499.6) * (499.6 / 3310) * (3310 / 5047.25) * (5047.25 / 2251.15)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 32.2285 * 0.3995 * 15.09 % * 0.6558 * 2.2421
=285.76 %

Note: The net income data used here is four times the quarterly (Oct. 2020) net income data. The Revenue data used here is four times the quarterly (Oct. 2020) 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.


HD Supply Holdings ROE % Related Terms

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


HD Supply Holdings (HD Supply Holdings) Business Description

Traded in Other Exchanges
N/A
Address
3100 Cumberland Boulevard, Suite 1480, Atlanta, GA, USA, 30339
Through a combination of acquisitions and organic growth, HD Supply has become one of the largest industrial distributors in North America. It is currently the market leader in the two sectors in which it operates (facilities and home improvement maintenance, repair, and operations and specialty construction). Today, HD Supply offers approximately 600,000 stock-keeping units and serves 500,000 customers through 270 branches and 44 distribution centers across the United States and Canada. HD Supply sold its construction and industrial business for $2.5 billion net of taxes and transaction costs in October 2020. On Nov. 16, 2020, Home Depot announced it had entered into a definitive agreement to acquire HD Supply for $56 per share.
Executives
Dan S Mcdevitt officer: Gen. Counsel & Corp. Secretary 3100 CUMBERLAND BOULEVARD SUITE 1700 ATLANTA GA 30339
Jana Partners Llc director, other: See Remarks 767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153
Peter A Dorsman director
Bradley Paulsen officer: Pres, HDS Facilities Main 3400 CUMBERLAND BOULEVARD ATLANTA GA 30339
Anna Stevens officer: Chief People Officer 3400 CUMBERLAND BOULEVARD, ATLANTA GA 30339
Evan Levitt officer: SVP, CFO & CAO 3100 CUMBERLAND BLVD STE 1480 ATLANTA GA 30339
Milford W Mcguirt director 3400 CUMBERLAND BOULEVARD, ATLANTA GA 30339
Joseph J Deangelo director, officer: Chairman, President and CEO 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
Patrick Mcnamee director C/O EXPRESS SCRIPTS, INC. 13900 RIVERPORT DRIVE MARYLAND HEIGHTS MO 63043
Lauren Taylor Wolfe director 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
James A Rubright director 3435 WOODHAVEN RD NW, ATLANTA GA 30305
Kathleen J Affeldt director
Stephen J. Konenkamp director 3400 CUMBERLAND BOULEVARD ATLANTA GA 30339
Charles Peffer director 5424 MOHAWK, FAIRWAY KS 66205
John Stegeman officer: Pres, HD Supply C&I-White Cap 3100 CUMBERLAND BLVD STE 1480 ATLANTA GA 30339