>
Switch to:

First Horizon ROE %

: 14.49% (As of Jun. 2021)
View and export this data going back to 1973. Start your Free Trial

ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. First Horizon's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2021 was $1,180 Mil. First Horizon's average Total Stockholders Equity over the quarter that ended in Jun. 2021 was $8,141 Mil. Therefore, First Horizon's annualized ROE % for the quarter that ended in Jun. 2021 was 14.49%.

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

NYSE:FHN' s ROE % Range Over the Past 10 Years
Min: -1.21   Med: 7.4   Max: 12.85
Current: 12.11

-1.21
12.85

During the past 13 years, First Horizon's highest ROE % was 12.85%. The lowest was -1.21%. And the median was 7.40%.

NYSE:FHN's ROE % is ranked higher than
93% of the 934 Companies
in the Banks industry.

( Industry Median: 11.10 vs. NYSE:FHN: 12.11 )

First Horizon ROE % Historical Data

The historical data trend for First Horizon'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.

First Horizon Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.29 4.76 12.28 9.38 12.85

First Horizon Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 32.81 11.82 11.23 14.49 10.86

Competitive Comparison

For the Banks - Regional subindustry, First Horizon'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.

   

First Horizon ROE % Distribution

For the Banks industry and Financial Services sector, First Horizon's ROE % distribution charts can be found below:

* The bar in red indicates where First Horizon's ROE % falls into.



First Horizon ROE % Calculation

First Horizon's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=822/( (4781+8012)/ 2 )
=822/6396.5
=12.85 %

First Horizon's annualized ROE % for the quarter that ended in Jun. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2021 )/( (Total Stockholders Equity (Q: Mar. 2021 )+Total Stockholders Equity (Q: Jun. 2021 ))/ count )
=1180/( (8012+8270)/ 2 )
=1180/8141
=14.49 %

* 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 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 (Jun. 2021) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


First Horizon  (NYSE:FHN) 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: Jun. 2021 )
=Net Income/Total Stockholders Equity
=1232/8141
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1232 / 3052)*(3052 / 87710.5)*(87710.5 / 8141)
=Net Margin %*Asset Turnover*Equity Multiplier
=40.37 %*0.0348*10.7739
=ROA %*Equity Multiplier
=1.4 %*10.7739
=15.13 %

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: Jun. 2021 )
=Net Income/Total Stockholders Equity
=1232/8141
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (1232 / 1596) * (1596 / 0) * (0 / 3052) * (3052 / 87710.5) * (87710.5 / 8141)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7719 * N/A * 0 % * 0.0348 * 10.7739
=15.13 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2021) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2021) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders 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.


First Horizon ROE % Related Terms

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


First Horizon Business Description

First Horizon logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6021
Address
165 Madison Avenue, Memphis, TN, USA, 38103
First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.
Executives
Casbon John N director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Barton Harry V Jr director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Maples Ricky E director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Kemp Sr James Michael director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Reed Colin V director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: REED COLIN V a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Subramaniam Rajesh director 165 MADISON AVE MEMPHIS TN 38103
Palmer Vicki R director PO BOX 723040 ATLANTA GA 30339
Stewart Cecelia D. director 8410 W. BRYN MAWR, SUITE 700 CHICAGO IL 60631
Compton John C director 700 ANDERSON HILL ROAD PURCHASE NY 10577
Fenstermaker William H director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Davidson Wendy P director 2210 WEST OAKLAWN DRIVE SPRINGDALE AR 72762
Shea E Stewart Iii director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Sugranes Rosa director 2975 N.W. 77TH AVE DORAL FL 33132
Burdick Kenneth A director 6705 ROCKLEDGE DR SUITE 900 BETHESDA MD 20817
Taylor R Eugene director BANK OF AMERICA CORP 100 NORTH TRYON ST NC1-007-57-01 CHARLOTTE NC 28255

First Horizon Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)