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Mayville Engineering Co ROE %

: 11.47% (As of Jun. 2022)
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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. Mayville Engineering Co's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $23.7 Mil. Mayville Engineering Co's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $206.8 Mil. Therefore, Mayville Engineering Co's annualized ROE % for the quarter that ended in Jun. 2022 was 11.47%.

The historical rank and industry rank for Mayville Engineering Co's ROE % or its related term are showing as below:

MEC' s ROE % Range Over the Past 10 Years
Min: -3.73   Med: -3.13   Max: 18.31
Current: -1.71

During the past 5 years, Mayville Engineering Co's highest ROE % was 18.31%. The lowest was -3.73%. And the median was -3.13%.

MEC's ROE % is ranked worse than
81.88% of 2687 companies
in the Industrial Products industry
Industry Median: 7.65 vs MEC: -1.71

Mayville Engineering Co ROE % Historical Data

The historical data trend for Mayville Engineering Co'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.

Mayville Engineering Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
5.65 18.31 -3.13 -3.53 -3.73

Mayville Engineering Co Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 6.30 0.52 -26.44 7.62 11.47

Competitive Comparison

For the Metal Fabrication subindustry, Mayville Engineering Co'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.

   

Mayville Engineering Co ROE % Distribution

For the Industrial Products industry and Industrials sector, Mayville Engineering Co's ROE % distribution charts can be found below:

* The bar in red indicates where Mayville Engineering Co's ROE % falls into.



Mayville Engineering Co ROE % Calculation

Mayville Engineering Co's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=-7.451/( (200.857+198.271)/ 2 )
=-7.451/199.564
=-3.73 %

Mayville Engineering Co's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=23.716/( (203.084+210.469)/ 2 )
=23.716/206.7765
=11.47 %

* 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. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Mayville Engineering Co  (NYSE:MEC) 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. 2022 )
=Net Income/Total Stockholders Equity
=23.716/206.7765
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(23.716 / 553.348)*(553.348 / 444.863)*(444.863 / 206.7765)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.29 %*1.2439*2.1514
=ROA %*Equity Multiplier
=5.34 %*2.1514
=11.47 %

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. 2022 )
=Net Income/Total Stockholders Equity
=23.716/206.7765
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (23.716 / 30.908) * (30.908 / 30.344) * (30.344 / 553.348) * (553.348 / 444.863) * (444.863 / 206.7765)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7673 * 1.0186 * 5.48 % * 1.2439 * 2.1514
=11.47 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) 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.


Mayville Engineering Co ROE % Related Terms

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


Mayville Engineering Co Business Description

Mayville Engineering Co logo
Traded in Other Exchanges
N/A
Address
715 South Street, Mayville, WI, USA, 53050
Mayville Engineering Co Inc is involved in a manufacturing partner that provides a broad range of prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. Its customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction, powersports, agriculture, military, and other end markets. Its services comprise stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services.
Executives
Kent Jennifer J. director QUAD/GRAPHICS, INC. N61 W23044 HARRY'S WAY SUSSEX WI 53089-3995
Stille Randall P officer: Chief Operating Officer 715 SOUTH STREET MAYVILLE WI 53050
Mance Stephen P. officer: Chief Operating Officer 715 SOUTH STREET MAYVILLE WI 53050
Fisher Steven L director 100 N.E. ADAMS STREET PEORIA IL 61629
Carlson Allen J director 1500 WEST UNIVERSITY PARKWAY SARASOTA FL 34243
Christen Timothy L director 715 SOUTH STREET MAYVILLE WI 53050
Rothman Jay O. director C/O QUAD/GRAPHICS, INC. N61 W23044 HARRY'S WAY SUSSEX WI 53089
Butz Todd M officer: Chief Financial Officer 715 SOUTH STREET MAYVILLE WI 53050
Kamphuis Robert D director, officer: Chairman, Pres. & CEO 715 SOUTH STREET MAYVILLE WI 53050
Raber Ryan F officer: EVP - Sales & Marketing 715 SOUTH STREET MAYVILLE WI 53050
Sanderson Clifford O officer: Vice President - HR 715 SOUTH STREET MAYVILLE WI 53050
Welak Eric J officer: EVP - Fabrication 715 SOUTH STREET MAYVILLE WI 53050
Michels Patrick D director 715 SOUTH STREET MAYVILLE WI 53050
St. Peter John A director 715 SOUTH STREET MAYVILLE WI 53050
Johnson Craig E director 715 SOUTH STREET MAYVILLE WI 53050

Mayville Engineering Co Headlines

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