0.08(0.81%) Volume: 29,992 10:08PM EST| Market Cap : 261.63 M | Enterprise Value : 233.66 M | P/E (TTM) : 19.31 | P/B : 1.13 |
|---|
NAS:WNEB has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NAS:WNEB has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Return on equity is calculated as Net Income attributable to Common Stockholders (Net Income minus the preferred dividends paid) divided by its average Total Stockholders Equity over a certain period of time. Western New England Bancorp's annualized net income attributable to common stockholders for the quarter that ended in Sep. 2019 was $12.90 Mil. Western New England Bancorp's average Total Stockholders Equity over the quarter that ended in Sep. 2019 was $230.85 Mil. Therefore, Western New England Bancorp's annualized return on equity (ROE) for the quarter that ended in Sep. 2019 was 5.59%.
During the past 13 years, Western New England Bancorp's highest Return on Equity (ROE) was 6.78%. The lowest was 1.28%. And the median was 3.50%.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
| Western New England Bancorp Quarterly Data | ||||||||||||||||||||
| Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | |
| ROE % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.47 | 6.42 | 5.91 | 5.70 | 5.59 |
* The bar in red indicates where Western New England Bancorp's ROE % falls into.
Western New England Bancorp's annualized Return on Equity (ROE) for the fiscal year that ended in Dec. 2018 is calculated as
| ROE | = | Net Income attributable to Common Stockholders (A: Dec. 2018 ) | / | ( (Total Stockholders Equity (A: Dec. 2017 ) | + | Total Stockholders Equity (A: Dec. 2018 )) | / 2 ) |
| = | 16.408 | / | ( (247.281 | + | 237.029) | / 2 ) | |
| = | 16.408 | / | 242.155 | ||||
| = | 6.78 % |
Western New England Bancorp's annualized Return on Equity (ROE) for the quarter that ended in Sep. 2019 is calculated as
| ROE | = | Net Income attributable to Common Stockholders (Q: Sep. 2019 ) | / | ( (Total Stockholders Equity (Q: Jun. 2019 ) | + | Total Stockholders Equity (Q: Sep. 2019 )) | / 2 ) |
| = | 12.9 | / | ( (229.716 | + | 231.981) | / 2 ) | |
| = | 12.9 | / | 230.8485 | ||||
| = | 5.59 % |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
In the calculation of annual return on equity, the net income attributable to common stockholders 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 attributable to common stockholders data used here is four times the quarterly (Sep. 2019) net income attributable to common stockholders data. Return on Equity is displayed in the 30-year financial page.
Return on Equity (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. ROEs between 15% and 20% are considered desirable.
The factors that affect a company's Return on Equity (ROE) can be illustrated with the three-step DuPont Analysis:
| ROE % | (Q: Sep. 2019 ) | ||||
| = | Net Income attributable to Common Stockholders | / | Total Stockholders Equity | ||
| = | 12.9 | / | 230.8485 | ||
| = | (Net Income attributable to Common Stockholders / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
| = | (12.9 / 68.556) | * | (68.556 / 2150.414) | * | (2150.414 / 230.8485) |
| = | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
| = | 18.82 % | * | 0.0319 | * | 9.3153 |
| = | ROA % | * | Equity Multiplier | ||
| = | 0.6 % | * | 9.3153 | ||
| = | 5.59 % |
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 return on equity.
The factors that affect a company's Return on Equity (ROE) can also be illustrated with the five-step DuPont Analysis:
| ROE % | (Q: Sep. 2019 ) | ||||||||
| = | Net Income to Common Stockholder | / | Total Stockholders Equity | ||||||
| = | 12.9 | / | 230.8485 | ||||||
| = | (NI to Com. Stockholder/Pre-Tax Income) | * | (Pre-Tax Income/Operating Income) | * | (Operating Income/Revenue) | * | (Revenue/Total Assets) | * | (Total Assets/Total Stockholders Equity) |
| = | (12.9 / 16.496) | * | (16.496 / 0) | * | (0 / 68.556) | * | (68.556 / 2150.414) | * | (2150.414 / 230.8485) |
| = | Tax Burden | * | Interest Burden | * | Operating Margin % | * | Asset Turnover | * | Equity Multiplier |
| = | 0.782 | * | N/A | * | 0 % | * | 0.0319 | * | 9.3153 |
| = | 5.59 % |
Note: The net income attributable to common stockholders data used here is four times the quarterly (Sep. 2019) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Sep. 2019) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
Net income attributable to common stockholders is used.
Because a company can increase its return on equity 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 ROEs can be extremely high.
No Headline
Excel Add-In GURUF
API
My Portfolios
Create New Portfolio
Portfolio Contest
My Gurus
Personalize
My Gurus
Email Alerts
Stock PDF
RSS
Website
Filings
Manual of Stocks™ Web APP