GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Willis Lease Finance Corp (NAS:WLFC) » Definitions » ROE %

Willis Lease Finance (Willis Lease Finance) ROE %

: 10.06% (As of Dec. 2023)
View and export this data going back to 1996. Start your Free Trial

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Willis Lease Finance's annualized net income for the quarter that ended in Dec. 2023 was $43.8 Mil. Willis Lease Finance's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $435.4 Mil. Therefore, Willis Lease Finance's annualized ROE % for the quarter that ended in Dec. 2023 was 10.06%.

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

WLFC' s ROE % Range Over the Past 10 Years
Min: 0.91   Med: 5.14   Max: 27.31
Current: 10.43

During the past 13 years, Willis Lease Finance's highest ROE % was 27.31%. The lowest was 0.91%. And the median was 5.14%.

WLFC's ROE % is ranked better than
56.8% of 1044 companies
in the Business Services industry
Industry Median: 8.61 vs WLFC: 10.43

Willis Lease Finance ROE % Historical Data

The historical data trend for Willis Lease Finance'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.

Willis Lease Finance 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 21.01 2.73 0.91 1.39 10.38

Willis Lease Finance 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 13.60 4.34 13.43 13.77 10.06

Competitive Comparison

For the Rental & Leasing Services subindustry, Willis Lease Finance'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.


Willis Lease Finance ROE % Distribution

For the Business Services industry and Industrials sector, Willis Lease Finance's ROE % distribution charts can be found below:

* The bar in red indicates where Willis Lease Finance's ROE % falls into.



Willis Lease Finance ROE % Calculation

Willis Lease Finance'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 )
=43.781/( (404.688+438.963)/ 2 )
=43.781/421.8255
=10.38 %

Willis Lease Finance'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 )
=43.812/( (431.928+438.963)/ 2 )
=43.812/435.4455
=10.06 %

* 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.


Willis Lease Finance  (NAS:WLFC) 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
=43.812/435.4455
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(43.812 / 457.12)*(457.12 / 2627.332)*(2627.332 / 435.4455)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.58 %*0.174*6.0337
=ROA %*Equity Multiplier
=1.67 %*6.0337
=10.06 %

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
=43.812/435.4455
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (43.812 / 83.924) * (83.924 / 164.244) * (164.244 / 457.12) * (457.12 / 2627.332) * (2627.332 / 435.4455)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.522 * 0.511 * 35.93 % * 0.174 * 6.0337
=10.06 %

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.


Willis Lease Finance ROE % Related Terms

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


Willis Lease Finance (Willis Lease Finance) Business Description

Traded in Other Exchanges
N/A
Address
4700 Lyons Technology Parkway, Coconut Creek, FL, USA, 33073
Willis Lease Finance Corp with its subsidiaries is a lessor and servicer of commercial aircraft and aircraft engines. The company has two reportable business segments namely Leasing and Related Operations which involves acquiring and leasing, pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses and Spare Parts Sales segment involves the purchase and resale of after-market engine parts, whole engines, engine modules and portable aircraft components.
Executives
Willis Charles F Iv director, 10 percent owner, officer: Executive Chairman 4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Scott B. Flaherty officer: SVP, CFO 4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Brian Richard Hole officer: President 4700 LYONS TECHNOLOGY, SUITE 2215, COCONUT CREEK FL 33073
Hans Jorg Hunziker director 4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Austin Chandler Willis director 4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Rae Ann Mckeating director PO BOX 593, MCCALL ID 83638
Robert J. Keady director 4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Robert T Morris director 4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Dean Michael Poulakidas officer: SVP, Gen. Counsel, Secretary 4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Anthony R. Spaulding officer: SVP, Technical Services 773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998
Donald A Nunemaker officer: EVP, General Mgr. Leasing 773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998
Bradley Stewart Forsyth officer: SVP, CFO 773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998
Ernest J. Furtado officer: Interim CFO 773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998
Coon W William Jr director 773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998
Judith M Webber officer: SVP, Technical Services 773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998