GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » W R Grace & Co (NYSE:GRA) » Definitions » ROE %

W R Grace (W R Grace) ROE % : 55.74% (As of Jun. 2021)


View and export this data going back to 1998. Start your Free Trial

What is W R Grace ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. W R Grace's annualized net income for the quarter that ended in Jun. 2021 was $182 Mil. W R Grace's average Total Stockholders Equity over the quarter that ended in Jun. 2021 was $326 Mil. Therefore, W R Grace's annualized ROE % for the quarter that ended in Jun. 2021 was 55.74%.

The historical rank and industry rank for W R Grace's ROE % or its related term are showing as below:

GRA's ROE % is not ranked *
in the Chemicals industry.
Industry Median: 5.42
* Ranked among companies with meaningful ROE % only.

W R Grace ROE % Historical Data

The historical data trend for W R Grace'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.

W R Grace ROE % Chart

W R Grace Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.64 3.58 57.07 34.76 -0.57

W R Grace Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -8.08 8.46 -63.52 102.01 55.74

Competitive Comparison of W R Grace's ROE %

For the Specialty Chemicals subindustry, W R Grace'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.


W R Grace's ROE % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, W R Grace's ROE % distribution charts can be found below:

* The bar in red indicates where W R Grace's ROE % falls into.



W R Grace ROE % Calculation

W R Grace's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=-1.8/( (395.7+231.4)/ 2 )
=-1.8/313.55
=-0.57 %

W R Grace's annualized ROE % for the quarter that ended in Jun. 2021 is calculated as

ROE %=Net Income (Q: Jun. 2021 )/( (Total Stockholders Equity (Q: Mar. 2021 )+Total Stockholders Equity (Q: Jun. 2021 ))/ count )
=181.6/( (305+346.6)/ 2 )
=181.6/325.8
=55.74 %

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


W R Grace  (NYSE:GRA) 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
=181.6/325.8
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(181.6 / 2051.6)*(2051.6 / 4073.1)*(4073.1 / 325.8)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.85 %*0.5037*12.5018
=ROA %*Equity Multiplier
=4.46 %*12.5018
=55.74 %

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
=181.6/325.8
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (181.6 / 254.8) * (254.8 / 392.8) * (392.8 / 2051.6) * (2051.6 / 4073.1) * (4073.1 / 325.8)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7127 * 0.6487 * 19.15 % * 0.5037 * 12.5018
=55.74 %

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


W R Grace ROE % Related Terms

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


W R Grace (W R Grace) Business Description

Traded in Other Exchanges
N/A
Address
7500 Grace Drive, Columbia, MD, USA, 21044-4098
W R Grace & Co, through its subsidiaries, makes and sells chemicals and silica-based materials used in refining, pharma, chemical manufacturing, coating, and various chemical process applications. The company has two reportable business segments: Grace catalysts technologies and Grace material technologies. Most of the company's revenue is generated by the Grace catalysts technologies segment from the sale of oil refining catalysts and catalysts used in petrochemical, refining, and other chemical manufacturing applications, and more than half of the revenue is earned in North America and Europe, Middle East, and Africa.
Executives
Mark E Tomkins director VULCAN MATERIALS CO, 1200 URBAN CENTER DR, BIRMINGHAM AL 35242
Diane H. Gulyas director C/O EXPEDITORS, 1015 THIRD AVENUE, SEATTLE WA 98104
Henry R Slack director 10070 DANIELS INTERSTATE COURT SUITE 100, FT MYERS FL 33935
Christopher J Steffen director 10188 TELESIS CT. SUITE 100 SAN DIEGO CA 92121
Julie Fasone Holder director 200 SOUTH WILCOX DRIVE, KINGSPORT TN 37662-0431
Cummings Robert F Jr director C/O MOORE CORP, ONE CANTARBURG GREET, STAMFORD CT 006901
Shlomo Yanai director ONE MEADOWLANDS PLAZA, EAST RUTHERFORD NJ 07073
Elizabeth C Brown officer: Sr. VP and CHRO C/O W. R. GRACE & CO., 7500 GRACE DRIVE, COLUMBIA MD 21044
William C. Dockman officer: Senior VP and CFO C/O W. R. GRACE & CO. 7500 GRACE DRIVE COLUMBIA MD 21044
La Force Andrew Hudson Iii director, officer: President and CEO C/O W. R. GRACE & CO., 7500 GRACE DRIVE, COLUMBIA MD 21044
Keith N Cole officer: Sr. VP, Govt. Rel. and EHS C/O W. R. GRACE & CO., 7500 GRACE DRIVE, COLUMBIA MD 21044
Mark A Shelnitz officer: Sr. VP, GC and Secretary C/O W. R. GRACE & CO., 7500 GRACE DRIVE, COLUMBIA MD 21044
Alfred E Festa director
Standard Latitude Master Fund Ltd. 10 percent owner 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019
Si Gp Iii Llc 10 percent owner 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019