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Sally Beauty Holdings ROE %

: 65.62% (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. Sally Beauty Holdings's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $186 Mil. Sally Beauty Holdings's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $284 Mil. Therefore, Sally Beauty Holdings's annualized ROE % for the quarter that ended in Jun. 2022 was 65.62%.

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

SBH' s ROE % Range Over the Past 10 Years
Min: 85.21   Med: 161.97   Max: 161.97
Current: 85.21

During the past 13 years, Sally Beauty Holdings's highest ROE % was 161.97%. The lowest was 85.21%. And the median was 161.97%.

SBH's ROE % is ranked better than
97.94% of 1070 companies
in the Retail - Cyclical industry
Industry Median: 7.07 vs SBH: 85.21

Sally Beauty Holdings ROE % Historical Data

The historical data trend for Sally Beauty Holdings'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.

Sally Beauty Holdings Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - 161.97

Sally Beauty Holdings Quarterly Data
Sep17 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 Premium Member Only 170.72 108.39 98.03 67.73 65.62

Competitive Comparison

For the Specialty Retail subindustry, Sally Beauty Holdings'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.

   

Sally Beauty Holdings ROE % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Sally Beauty Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Sally Beauty Holdings's ROE % falls into.



Sally Beauty Holdings ROE % Calculation

Sally Beauty Holdings's annualized ROE % for the fiscal year that ended in Sep. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Sep. 2021 )/( (Total Stockholders Equity (A: Sep. 2020 )+Total Stockholders Equity (A: Sep. 2021 ))/ count )
=239.858/( (15.443+280.741)/ 2 )
=239.858/148.092
=161.97 %

Sally Beauty Holdings'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 )
=186.268/( (271.866+295.871)/ 2 )
=186.268/283.8685
=65.62 %

* 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.


Sally Beauty Holdings  (NYSE:SBH) 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
=186.268/283.8685
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(186.268 / 3845.868)*(3845.868 / 2714.4345)*(2714.4345 / 283.8685)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.84 %*1.4168*9.5623
=ROA %*Equity Multiplier
=6.86 %*9.5623
=65.62 %

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
=186.268/283.8685
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (186.268 / 252.904) * (252.904 / 396.988) * (396.988 / 3845.868) * (3845.868 / 2714.4345) * (2714.4345 / 283.8685)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7365 * 0.6371 * 10.32 % * 1.4168 * 9.5623
=65.62 %

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.


Sally Beauty Holdings ROE % Related Terms

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


Sally Beauty Holdings Business Description

Sally Beauty Holdings logo
Traded in Other Exchanges
Address
3001 Colorado Boulevard, Denton, TX, USA, 76210
Sally Beauty Holdings Inc is a professional beauty-products retailer based in the United States. Sally Beauty operates throughout the United States, Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Colombia, Mexico, Peru, France, Ireland, Spain, Germany, and the Netherlands. The company operates through two business segments: Sally Beauty Supply and Beauty Systems Group. Product offerings include hair color and care, hair dryers and hair-styling appliances, nail care, skin care, and others.
Executives
Heasley Linda director 4 BATTERYMARCH PARK QUINCY MA 02169
Paulonis Denise director, officer: President & CEO 8000 BENT BRANCH DRIVE IRVING TX 75063
Mcmaster Robert R director, other: Chairman of the Board 907-B EAST MAIN STREET HUMBLE TX 77338-4662
Platz Marlo Michelle Cormier officer: SVP, CFO 2180 RUTHERFORD ROAD CARLSBAD CA 92008
Miller John A director 3001 COLORADO BLVD DENTON TX 76210
Eisenberg Marshall E director TWO NORTH LASALLE STREET CHICAGO IL 60602
Rabin Edward W director 200 WEST MADISON STE.3900 CHICAGO IL 60606
Kohn Pamela K officer: See Remarks 3001 COLORADO BLVD DENTON TX 76210
Spinks Mark Gregory officer: See Remarks 3001 COLORADO BLVD. DENTON TX 76210
Henrich John M officer: See Remarks 3001 COLORADO BLVD DENTON TX 76210
Sherman Scott C officer: SVP & CHRO 3001 COLORADO BLVD. DENTON TX 76210
Mulder Susan R director 3001 COLORADO BLVD. DENTON TX 76210
Cox Erin Nealy director 3001 COLORADO BLVD. DENTON TX 76210
Goss John Howard Jr officer: See Remarks 3001 COLORADO BLVD DENTON TX 76210
Edwards Mary Beth Beth officer: SVP, CIO & CTO 3001 COLORADO BLVD DENTON TX 76210

Sally Beauty Holdings Headlines

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