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Olaplex Holdings (Olaplex Holdings) ROE % : 6.69% (As of Dec. 2023)


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What is Olaplex Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Olaplex Holdings's annualized net income for the quarter that ended in Dec. 2023 was $56.4 Mil. Olaplex Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $842.7 Mil. Therefore, Olaplex Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 6.69%.

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

OLPX' s ROE % Range Over the Past 10 Years
Min: 7.53   Med: 37.4   Max: 330.7
Current: 7.53

During the past 5 years, Olaplex Holdings's highest ROE % was 330.70%. The lowest was 7.53%. And the median was 37.40%.

OLPX's ROE % is ranked better than
54.96% of 1088 companies
in the Retail - Cyclical industry
Industry Median: 5.96 vs OLPX: 7.53

Olaplex Holdings ROE % Historical Data

The historical data trend for Olaplex 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.

Olaplex Holdings ROE % Chart

Olaplex Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
330.70 14.31 41.86 37.40 7.58

Olaplex Holdings Quarterly Data
Dec19 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 17.64 10.56 3.03 9.83 6.69

Competitive Comparison of Olaplex Holdings's ROE %

For the Specialty Retail subindustry, Olaplex 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.


Olaplex Holdings's ROE % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Olaplex Holdings's ROE % distribution charts can be found below:

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



Olaplex Holdings ROE % Calculation

Olaplex Holdings'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 )
=61.587/( (780.957+844.968)/ 2 )
=61.587/812.9625
=7.58 %

Olaplex Holdings'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 )
=56.404/( (840.395+844.968)/ 2 )
=56.404/842.6815
=6.69 %

* 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.


Olaplex Holdings  (NAS:OLPX) 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
=56.404/842.6815
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(56.404 / 446.868)*(446.868 / 1741.2525)*(1741.2525 / 842.6815)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.62 %*0.2566*2.0663
=ROA %*Equity Multiplier
=3.24 %*2.0663
=6.69 %

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
=56.404/842.6815
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (56.404 / 68.992) * (68.992 / 98.268) * (98.268 / 446.868) * (446.868 / 1741.2525) * (1741.2525 / 842.6815)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8175 * 0.7021 * 21.99 % * 0.2566 * 2.0663
=6.69 %

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.


Olaplex Holdings ROE % Related Terms

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


Olaplex Holdings (Olaplex Holdings) Business Description

Traded in Other Exchanges
N/A
Address
1187 Coast Village Road, Suite 1-520, Santa Barbara, CA, USA, 93108
Olaplex Holdings Inc is a science-enabled, technology-driven beauty company. It offers science-backed solutions that improve hair health. It identifies consumers' most relevant haircare concerns in collaboration with the community of professional hairstylists and consumers and strives to address them through its proprietary technology and innovation capabilities. It offers products through a global omnichannel platform serving the professional, specialty retail, and DTC channels. The company derives its revenue through the sale of its specialty hair care products.
Executives
John P Bilbrey director
Advent International Gp, Llc director, 10 percent owner 800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199
David M Mussafer director C/O ADVENT INTERNATIONAL CORP, 75 STATE ST 29TH FLOOR, BOSTON MA 02104
Tricia Glynn director C/O ADVENT INERNATIONAL CORPORATION, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199
Michael James White director C/O ADVENT INTERNATIONAL, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199
Eric Tiziani officer: Chief Financial Officer 1187 COAST VILLAGE ROAD, SUITE 1-520, SANTA BARBARA CA 93108
Kristi A Belhumeur officer: See Remarks 6312 S FIDDLERS GREEN CIRCLE, SUITE 200N, GREENWOOD VILLAGE CO 80111
Morfitt Martha A M director P.O. BOX 1441, MINNEAPOLIS MN 55440-1441
Advent International Corp/ma director, 10 percent owner 800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199
Advent Partners Gpe Ix-b Cayman Limited Partnership director, 10 percent owner C/O ADVENT INTERNATIONAL CORPORATION, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199-8069
Emily White director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Christine Dagousset director 9 W 57TH STREET, C/O CHANEL, NEW YORK NY 10019
Tiffany Walden director, officer: See Remarks 1187 COAST VILLAGE ROAD, SUITE 1-520, SANTA BARBARA CA 93108
Paula Zusi director 481 MYRTLE AVENUE, OCEANPORT NJ 07757
Janet Gurwitch director 1284 NORTH TELEGRPAH, MONROE MI 48162

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