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Raven Industries (Raven Industries) ROE % : 7.87% (As of Jul. 2021)


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What is Raven Industries ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Raven Industries's annualized net income for the quarter that ended in Jul. 2021 was $27.4 Mil. Raven Industries's average Total Stockholders Equity over the quarter that ended in Jul. 2021 was $348.3 Mil. Therefore, Raven Industries's annualized ROE % for the quarter that ended in Jul. 2021 was 7.87%.

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

RAVN' s ROE % Range Over the Past 10 Years
Min: 1.68   Med: 13.36   Max: 31.44
Current: 7.62

During the past 13 years, Raven Industries's highest ROE % was 31.44%. The lowest was 1.68%. And the median was 13.36%.

RAVN's ROE % is not ranked
in the Industrial Products industry.
Industry Median: 7.105 vs RAVN: 7.62

Raven Industries ROE % Historical Data

The historical data trend for Raven Industries'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.

Raven Industries ROE % Chart

Raven Industries Annual Data
Trend Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.71 15.32 17.71 11.29 5.84

Raven Industries Quarterly Data
Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
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 7.39 10.82 0.34 11.40 7.87

Competitive Comparison of Raven Industries's ROE %

For the Specialty Industrial Machinery subindustry, Raven Industries'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.


Raven Industries's ROE % Distribution in the Industrial Products Industry

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

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



Raven Industries ROE % Calculation

Raven Industries's annualized ROE % for the fiscal year that ended in Jan. 2021 is calculated as

ROE %=Net Income (A: Jan. 2021 )/( (Total Stockholders Equity (A: Jan. 2020 )+Total Stockholders Equity (A: Jan. 2021 ))/ count )
=18.876/( (314.646+331.355)/ 2 )
=18.876/323.0005
=5.84 %

Raven Industries's annualized ROE % for the quarter that ended in Jul. 2021 is calculated as

ROE %=Net Income (Q: Jul. 2021 )/( (Total Stockholders Equity (Q: Apr. 2021 )+Total Stockholders Equity (Q: Jul. 2021 ))/ count )
=27.412/( (343.985+352.524)/ 2 )
=27.412/348.2545
=7.87 %

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


Raven Industries  (NAS:RAVN) 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: Jul. 2021 )
=Net Income/Total Stockholders Equity
=27.412/348.2545
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(27.412 / 457.704)*(457.704 / 437.5355)*(437.5355 / 348.2545)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.99 %*1.0461*1.2564
=ROA %*Equity Multiplier
=6.27 %*1.2564
=7.87 %

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: Jul. 2021 )
=Net Income/Total Stockholders Equity
=27.412/348.2545
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (27.412 / 32.232) * (32.232 / 33.336) * (33.336 / 457.704) * (457.704 / 437.5355) * (437.5355 / 348.2545)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8505 * 0.9669 * 7.28 % * 1.0461 * 1.2564
=7.87 %

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


Raven Industries ROE % Related Terms

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


Raven Industries (Raven Industries) Business Description

Traded in Other Exchanges
N/A
Address
205 East 6th Street, P.O. Box 5107, Sioux Falls, SD, USA, 57117- 5107
Raven Industries Inc is a diversified technology company providing products to customers within the industrial, agricultural, energy, construction, and defense markets. The company has three reportable segments namely Applied Technology, Engineered Films Division, and Aerostar Division. Applied Technology sells its precision agriculture control products to both original equipment manufacturers and through aftermarket distribution partners. Its Engineered Films produces high-performance plastic films and sheeting for geomembrane, agricultural, construction, and industrial applications, and Aerostar serves the aerospace/defense, radar, and lighter-than-air markets. It generates a majority of its revenue from the Engineered Films segment.
Executives
Brian E Meyer officer: Division Vice President & GM P.O. BOX 5107 SIOUX FALLS SD 57117
Marc E Lebaron director 600 WEST E STREET, LINCOLN NE 68522
Steven E Brazones officer: VP & CFO, Treasurer P.O. BOX 5107 SIOUX FALLS SD 57117
Jason M Andringa director PO BOX 5107 SIOUX FALLS SD 57117
Lee A Magnuson officer: General Counsel and VP P.O. BOX 5107 SIOUX FALLS SD 57117-5107
Lois M Martin director PO BOX 1101, ADC TELCOMMUNICATIONS INC, MINNEAPOLIS MN 55440-1104
Janet M Holloway director MONSANTO COMPANY 800 N. LINDBERGH BLVD. ST. LOUIS MO 63167
Thomas S Everist director
Rick Parod director 2707 N 108TH STREET STE102, OMAHA NE 68164
Kevin T. Kirby director P.O. BOX 5107 SIOUX FALLS SD 57117
Nicole M Freesemann officer: Vice President HR P.O. BOX 5107 SIOUX FALLS SD 57117-5107
Scott W Wickersham officer: Div VP & General Manager P.O. BOX 5107 SIOUX FALLS SD 57117-5107
Johnson Schmidt Anthony D officer: Division VP and GM P.O. BOX 5107 SIOUX FALLS SD 57117
Daniel A Rykhus director, officer: President & CEO C/O RAVEN INDUSTRIES, PO BOX 5107, SIOUX FALLS SD 57117
David L Chicoine director 800 NORTH LINDBERGH BLVD. ST. LOUIS MO 63167