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Great Plains Energy (Great Plains Energy) ROE %

: 2.83% (As of Mar. 2018)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Great Plains Energy's annualized net income for the quarter that ended in Mar. 2018 was $140.00 Mil. Great Plains Energy's average Total Stockholders Equity over the quarter that ended in Mar. 2018 was $4,953.30 Mil. Therefore, Great Plains Energy's annualized ROE % for the quarter that ended in Mar. 2018 was 2.83%.

The historical rank and industry rank for Great Plains Energy's ROE % or its related term are showing as below:

GXPPRECL.PFD' s ROE % Range Over the Past 10 Years
Min: -2.58   Med: 6.03   Max: 7.36
Current: -1.54

During the past 13 years, Great Plains Energy's highest ROE % was 7.36%. The lowest was -2.58%. And the median was 6.03%.

GXPPRECL.PFD's ROE % is not ranked
in the Utilities - Regulated industry.
Industry Median: 8.8 vs GXPPRECL.PFD: -1.54

Great Plains Energy ROE % Historical Data

The historical data trend for Great Plains Energy'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.

Great Plains Energy Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.26 6.80 5.82 5.88 -1.91

Great Plains Energy Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
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 -0.63 -0.46 0.75 -7.94 2.83

Competitive Comparison

For the Utilities - Regulated Electric subindustry, Great Plains Energy'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.


Great Plains Energy ROE % Distribution

For the Utilities - Regulated industry and Utilities sector, Great Plains Energy's ROE % distribution charts can be found below:

* The bar in red indicates where Great Plains Energy's ROE % falls into.



Great Plains Energy ROE % Calculation

Great Plains Energy's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=-106.2/( (6162+4964.8)/ 2 )
=-106.2/5563.4
=-1.91 %

Great Plains Energy's annualized ROE % for the quarter that ended in Mar. 2018 is calculated as

ROE %=Net Income (Q: Mar. 2018 )/( (Total Stockholders Equity (Q: Dec. 2017 )+Total Stockholders Equity (Q: Mar. 2018 ))/ count )
=140/( (4964.8+4941.8)/ 2 )
=140/4953.3
=2.83 %

* 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 (Mar. 2018) net income data. ROE % is displayed in the 30-year financial page.


Great Plains Energy  (NYSE:GXPPRECL.PFD) 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: Mar. 2018 )
=Net Income/Total Stockholders Equity
=140/4953.3
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(140 / 2335.6)*(2335.6 / 12453.15)*(12453.15 / 4953.3)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.99 %*0.1876*2.5141
=ROA %*Equity Multiplier
=1.12 %*2.5141
=2.83 %

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: Mar. 2018 )
=Net Income/Total Stockholders Equity
=140/4953.3
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (140 / 158) * (158 / 356.8) * (356.8 / 2335.6) * (2335.6 / 12453.15) * (12453.15 / 4953.3)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8861 * 0.4428 * 15.28 % * 0.1876 * 2.5141
=2.83 %

Note: The net income data used here is four times the quarterly (Mar. 2018) net income data. The Revenue data used here is four times the quarterly (Mar. 2018) 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.


Great Plains Energy ROE % Related Terms

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Great Plains Energy (Great Plains Energy) Business Description

Traded in Other Exchanges
N/A
Address
Great Plains Energy is the holding company of Kansas City Power & Light and Greater Missouri Operations. The two regulated utilities provide electric service to roughly 900,000 customers in the Kansas City area and nearby western Missouri and eastern Kansas. The company has about 6.5 gigawatts of generating capacity. More than 80% of its electricity generation is from coal-fired plants, approximately 15% comes from its co-owned Wolf Creek nuclear plant, and the remainder is from gas, oil, and wind farms.

Great Plains Energy (Great Plains Energy) Headlines

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