GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Rollins Inc (NYSE:ROL) » Definitions » ROE %

Rollins (Rollins) ROE % : 38.54% (As of Dec. 2023)


View and export this data going back to 1968. Start your Free Trial

What is Rollins ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rollins's annualized net income for the quarter that ended in Dec. 2023 was $435 Mil. Rollins's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,129 Mil. Therefore, Rollins's annualized ROE % for the quarter that ended in Dec. 2023 was 38.54%.

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

ROL' s ROE % Range Over the Past 10 Years
Min: 26.62   Med: 30.74   Max: 35.91
Current: 35.33

During the past 13 years, Rollins's highest ROE % was 35.91%. The lowest was 26.62%. And the median was 30.74%.

ROL's ROE % is ranked better than
89.69% of 97 companies
in the Personal Services industry
Industry Median: 8.56 vs ROL: 35.33

Rollins ROE % Historical Data

The historical data trend for Rollins'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.

Rollins ROE % Chart

Rollins Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.62 30.36 34.74 31.00 35.91

Rollins Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 27.36 27.63 33.50 41.81 38.54

Competitive Comparison of Rollins's ROE %

For the Personal Services subindustry, Rollins'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.


Rollins's ROE % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Rollins's ROE % distribution charts can be found below:

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



Rollins ROE % Calculation

Rollins's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=434.957/( (1267.197+1155.567)/ 2 )
=434.957/1211.382
=35.91 %

Rollins's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=435.212/( (1102.843+1155.567)/ 2 )
=435.212/1129.205
=38.54 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Rollins  (NYSE:ROL) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=435.212/1129.205
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(435.212 / 3016.344)*(3016.344 / 2617.7085)*(2617.7085 / 1129.205)
=Net Margin %*Asset Turnover*Equity Multiplier
=14.43 %*1.1523*2.3182
=ROA %*Equity Multiplier
=16.63 %*2.3182
=38.54 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=435.212/1129.205
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (435.212 / 586.7) * (586.7 / 556.292) * (556.292 / 3016.344) * (3016.344 / 2617.7085) * (2617.7085 / 1129.205)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7418 * 1.0547 * 18.44 % * 1.1523 * 2.3182
=38.54 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


Rollins ROE % Related Terms

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


Rollins (Rollins) Business Description

Traded in Other Exchanges
Address
2170 Piedmont Road, N.E., Atlanta, GA, USA, 30324
Rollins is a global leader in route-based pest-control services, with operations spanning North, Central and South America, Europe, the Middle East and Africa and Australia. Its portfolio of pest-control brands includes the prominent Orkin brand, market leader in the U.S., where it boasts near national coverage, and in Canada. Residential pest and termite prevention dominates the services provided by Rollins, owing to the group's ongoing focus on U.S. and Canadian markets.
Executives
Jerry Jr. Gahlhoff director, officer: PRESIDENT & CEO 2170 PIEDMONT ROAD N.E., ATLANTA GA 30324
Paul Russell Hardin director 2999 WILDWOOD PARKWAY SE, ATLANTA GA 30339
Gary W. Rollins Voting Trust U/a Dated September 14, 1994 10 percent owner C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY, NE, ATLANTA GA 30329
Lor Inc 10 percent owner C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
R. Randall Rollins Voting Trust U/a Dated August 25, 1994 10 percent owner C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
Kenneth D. Krause officer: EXEC. VP, CFO AND TREASURER 1000 CRANBERRY WOODS DRIVE, CRANBERRY TOWNSHIP PA 16066
Timothy Curtis Rollins 10 percent owner 2801 BUFORD HIGHWAY, NE, SUITE 520, ATLANTA GA 30329
Jerry W Nix director 2999 WILDWOOD PARKWAY, ATLANTA GA 30339
Louise S Sams director C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Gregory B Morrison director 8214 WESTCHESTER DRIVE, SUITE 400, DALLAS TX 75225
Donald P Carson director C/O VSI LIQUIDATION CORP., 2170 PIEDMONT ROAD, ATLANTA GA 30324
Susan R. Bell director 852 CASTLE FALLS DR., ATLANTA GA 30329
Patrick J. Gunning director 1958 CALDER COURT, DUNWOODY GA 30338
John F Wilson director, officer: President and COO 2170 PIEDMONT ROAD, NE, ATLANTA GA 30324
Thomas D Tesh officer: Chief Admin. Officer and CIO 2170 N PIEDMONT ROAD NE, ATLANTA GA 30324

Rollins (Rollins) Headlines

From GuruFocus

Q4 2022 Rollins Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2018 Rollins Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q2 2020 Rollins Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2019 Rollins Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2021 Rollins Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2020 Rollins Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2021 Rollins Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2020 Rollins Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024