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Resolute Forest Products (Resolute Forest Products) ROE % : 16.83% (As of Sep. 2022)


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What is Resolute Forest Products ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Resolute Forest Products's annualized net income for the quarter that ended in Sep. 2022 was $348 Mil. Resolute Forest Products's average Total Stockholders Equity over the quarter that ended in Sep. 2022 was $2,068 Mil. Therefore, Resolute Forest Products's annualized ROE % for the quarter that ended in Sep. 2022 was 16.83%.

The historical rank and industry rank for Resolute Forest Products's ROE % or its related term are showing as below:

RFP' s ROE % Range Over the Past 10 Years
Min: -21.56   Med: -3.94   Max: 23.98
Current: 23.98

During the past 13 years, Resolute Forest Products's highest ROE % was 23.98%. The lowest was -21.56%. And the median was -3.94%.

RFP's ROE % is not ranked
in the Forest Products industry.
Industry Median: 4.04 vs RFP: 23.98

Resolute Forest Products ROE % Historical Data

The historical data trend for Resolute Forest Products'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.

Resolute Forest Products ROE % Chart

Resolute Forest Products Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.10 15.00 -3.40 0.86 23.66

Resolute Forest Products Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
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 22.47 -34.40 51.49 54.35 16.83

Competitive Comparison of Resolute Forest Products's ROE %

For the Paper & Paper Products subindustry, Resolute Forest Products'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.


Resolute Forest Products's ROE % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Resolute Forest Products's ROE % distribution charts can be found below:

* The bar in red indicates where Resolute Forest Products's ROE % falls into.



Resolute Forest Products ROE % Calculation

Resolute Forest Products's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=307/( (1081+1514)/ 2 )
=307/1297.5
=23.66 %

Resolute Forest Products's annualized ROE % for the quarter that ended in Sep. 2022 is calculated as

ROE %=Net Income (Q: Sep. 2022 )/( (Total Stockholders Equity (Q: Jun. 2022 )+Total Stockholders Equity (Q: Sep. 2022 ))/ count )
=348/( (2019+2116)/ 2 )
=348/2067.5
=16.83 %

* 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 (Sep. 2022) net income data. ROE % is displayed in the 30-year financial page.


Resolute Forest Products  (NYSE:RFP) 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: Sep. 2022 )
=Net Income/Total Stockholders Equity
=348/2067.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(348 / 3896)*(3896 / 4045)*(4045 / 2067.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.93 %*0.9632*1.9565
=ROA %*Equity Multiplier
=8.6 %*1.9565
=16.83 %

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: Sep. 2022 )
=Net Income/Total Stockholders Equity
=348/2067.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (348 / 612) * (612 / 492) * (492 / 3896) * (3896 / 4045) * (4045 / 2067.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5686 * 1.2439 * 12.63 % * 0.9632 * 1.9565
=16.83 %

Note: The net income data used here is four times the quarterly (Sep. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 2022) 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.


Resolute Forest Products ROE % Related Terms

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


Resolute Forest Products (Resolute Forest Products) Business Description

Traded in Other Exchanges
N/A
Address
1010 De La Gauchetiere Street West, Suite 400, Montreal, QC, CAN, H3B 2N2
Resolute Forest Products Inc is engaged in the forest products industry with a range of products, including market pulp, tissue, wood products, newsprint, and specialty papers. The product range includes market pulp, tissue, wood products, newsprint and specialty papers which are marketed to nearly 50 countries. The company owns or operates pulp, paper, tissue and wood products facilities in the United States and Canada.
Executives
Patrice Minguez officer: President, Tissue Group C/O RESOLUTE FOREST PRODUCTS INC., 111 DUKE STREET, MONTREAL A8 H3C 2M1
Hugues Simon officer: President, Wood products 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1
Sylvain A. Girard officer: Chief Financial Officer 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1
Duncan Davies director 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1
Stephanie Leclaire officer: Chief Legal Officer 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1
Daniel Viboux officer: Chief Accounting Officer 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1
Suzanne Blanchet director 111 ROBERT-BOURASSA BOULEVARD, SUITE 5000, MONTREAL A8 H3C 2M1
Michael S Rousseau director C/O ABITIBIBOWATER INC., 1155 METCALFE STREET, SUITE 800, MONTREAL, QUEBEC Z4 H3B 5H2
Alain Rheaume director C/O ABITIBIBOWATER INC., 1155 METCALFE STREET, SUITE 800, MONTREAL, QUEBEC Z4 H3B 5H2
Lori Kilgour officer: SVP, Chief Information Officer 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C2M1
Daniel Ouellet officer: SVP Human Resources 111 ROBERT-BOURASSA BOULEVARD, SUITE 5000, MONTREAL A8 H3C 2M1
Richard Joseph Tremblay officer: SVP, Pulp and Paper Operations C/O RESOLUTE FOREST PRODUCTS INC., 111 DUKE STREET, SUITE 5000, MONTREAL A8 H3C 2M1
John Lafave officer: Senior Vice President C/O ABITIBIBOWATER INC., 1155 METCALFE STREET, SUITE 800, MONTREAL A8 H3B 5H2
Randall C Benson director RESOLUTE FOREST PRODUCTS INC., 111 DUKE STREET, SUITE 5000, MONTREAL A8 H3C 2M1
Bradley Martin director C/O ODYSSEY RE HOLDINGS CORP., 300 FIRST STAMFORD PLACE, STAMFORD CT 06902