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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. WellCare Health Plans's annualized net income for the quarter that ended in Sep. 2019 was $964 Mil. WellCare Health Plans's average Total Stockholders Equity over the quarter that ended in Sep. 2019 was $4,730 Mil. Therefore, WellCare Health Plans's annualized ROE % for the quarter that ended in Sep. 2019 was 20.38%.
The historical rank and industry rank for WellCare Health Plans's ROE % or its related term are showing as below:
The historical data trend for WellCare Health Plans'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.
WellCare Health Plans Annual Data | |||||||||||||||||||||
Trend | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | |||||||||||
ROE % | Get a 7-Day Free Trial | 4.09 | 7.14 | 12.99 | 16.92 | 13.21 |
WellCare Health Plans Quarterly Data | ||||||||||||||||||||
Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | |
ROE % | Get a 7-Day Free Trial | 15.29 | 5.32 | 14.03 | 16.26 | 20.38 |
For the Healthcare Plans subindustry, WellCare Health Plans'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.
For the Healthcare Plans industry and Healthcare sector, WellCare Health Plans's ROE % distribution charts can be found below:
* The bar in red indicates where WellCare Health Plans's ROE % falls into.
WellCare Health Plans's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as
ROE % | = | Net Income (A: Dec. 2018 ) | / | ( (Total Stockholders Equity (A: Dec. 2017 ) | + | Total Stockholders Equity (A: Dec. 2018 )) | / count ) |
= | 439.8 | / | ( (2416.7 | + | 4240) | / 2 ) | |
= | 439.8 | / | 3328.35 | ||||
= | 13.21 % |
WellCare Health Plans's annualized ROE % for the quarter that ended in Sep. 2019 is calculated as
ROE % | = | Net Income (Q: Sep. 2019 ) | / | ( (Total Stockholders Equity (Q: Jun. 2019 ) | + | Total Stockholders Equity (Q: Sep. 2019 )) | / count ) |
= | 964 | / | ( (4603.3 | + | 4856.4) | / 2 ) | |
= | 964 | / | 4729.85 | ||||
= | 20.38 % |
* 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. 2019) net income data. ROE % is displayed in the 30-year financial page.
WellCare Health Plans (NYSE:WCG) 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. 2019 ) | ||||
= | Net Income | / | Total Stockholders Equity | ||
= | 964 | / | 4729.85 | ||
= | (Net Income / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (964 / 28560.8) | * | (28560.8 / 13533.6) | * | (13533.6 / 4729.85) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 3.38 % | * | 2.1104 | * | 2.8613 |
= | ROA % | * | Equity Multiplier | ||
= | 7.13 % | * | 2.8613 | ||
= | 20.38 % |
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. 2019 ) | ||||||||
= | Net Income | / | Total Stockholders Equity | ||||||
= | 964 | / | 4729.85 | ||||||
= | (Net Income / Pre-Tax Income) | * | (Pre-Tax Income / Operating Income) | * | (Operating Income / Revenue) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (964 / 1254.8) | * | (1254.8 / 1290.8) | * | (1290.8 / 28560.8) | * | (28560.8 / 13533.6) | * | (13533.6 / 4729.85) |
= | Tax Burden | * | Interest Burden | * | Operating Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 0.7682 | * | 0.9721 | * | 4.52 % | * | 2.1104 | * | 2.8613 |
= | 20.38 % |
Note: The net income data used here is four times the quarterly (Sep. 2019) net income data. The Revenue data used here is four times the quarterly (Sep. 2019) 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.
Thank you for viewing the detailed overview of WellCare Health Plans's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
William L Trubeck | director | ONE H&R BLOCK WAY, KANSAS CITY MO 64105 |
H James Dallas | director | 127 PUBLIC SQUARE, CLEVELAND OH 44114 |
Kenneth A Burdick | director, officer: Chief Executive Officer | 6705 ROCKLEDGE DR, SUITE 900, BETHESDA MD 20817 |
Anat Hakim | officer: EVP, General Counsel/Secretary | LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285 |
Paul E Weaver | director | C/O GATEWAY, INC., 7565 IRVINE CENTER DRIVE, IRVINE CA 92618 |
Steele Glenn Jr Md Phd | director | 250 TECHNOLOGY PARK, LAKE MARY FL 32746-6232 |
Carol Burt | director | C/O WELLCARE HEALTH PLANS, INC., 8725 HENDERSON ROAD, TAMPA FL 33634 |
Roel C Campos | director | 509 WEST BUTLER ROAD, GREENVILLE SC 29607 |
Maurice Hebert | officer: Chief Accounting Officer | C/O WELLCARE HEALTH PLANS, INC., 8735 HENDERSON ROAD, TAMPA FL 33634 |
David J Gallitano | director | 3552 CHURCH ROAD, ELLICOTT CITY MD 21043 |
Thomas L Tran | officer: Chief Financial Officer | 8735 HENDERSON ROAD, TAMPA FL 33625 |
Lisa G Iglesias | officer: SVP, General Counsel | 1 FOUNTAIN SQUARE, LAW DEPT. 7S730, CHATTANOOGA TN 37402 |
Lucinda M. Baily | officer: Chief Compliance Officer | 10910 DOMAIN DRIVE, SUITE 300, AUSTIN TX 78758 |
Walter W. Cooper | officer: Chief Administrative Officer | 8725 HENDERSON ROAD, REN. 1, TAMPA FL 33634 |
Charles Berg | other: Former Director | 48 MONROE TURNPIKE, TRUMBULL CT 06611 |
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