GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » KHD Humboldt Wedag International AG (OTCPK:KHDHF) » Definitions » ROE %

KHD Humboldt Wedag International AG (KHD Humboldt Wedag International AG) ROE % : 4.22% (As of Dec. 2023)


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

What is KHD Humboldt Wedag International AG ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. KHD Humboldt Wedag International AG's annualized net income for the quarter that ended in Dec. 2023 was $4.3 Mil. KHD Humboldt Wedag International AG's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $102.4 Mil. Therefore, KHD Humboldt Wedag International AG's annualized ROE % for the quarter that ended in Dec. 2023 was 4.22%.

The historical rank and industry rank for KHD Humboldt Wedag International AG's ROE % or its related term are showing as below:

KHDHF' s ROE % Range Over the Past 10 Years
Min: -18.73   Med: -8.39   Max: 4.59
Current: 4.58

During the past 13 years, KHD Humboldt Wedag International AG's highest ROE % was 4.59%. The lowest was -18.73%. And the median was -8.39%.

KHDHF's ROE % is ranked worse than
76.22% of 143 companies
in the Industrial Distribution industry
Industry Median: 10.43 vs KHDHF: 4.58

KHD Humboldt Wedag International AG ROE % Historical Data

The historical data trend for KHD Humboldt Wedag International AG'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.

KHD Humboldt Wedag International AG ROE % Chart

KHD Humboldt Wedag International AG 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 -16.72 -8.80 -1.23 0.30 4.65

KHD Humboldt Wedag International AG Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 0.97 -0.21 0.83 4.99 4.22

Competitive Comparison of KHD Humboldt Wedag International AG's ROE %

For the Industrial Distribution subindustry, KHD Humboldt Wedag International AG'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.


KHD Humboldt Wedag International AG's ROE % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, KHD Humboldt Wedag International AG's ROE % distribution charts can be found below:

* The bar in red indicates where KHD Humboldt Wedag International AG's ROE % falls into.



KHD Humboldt Wedag International AG ROE % Calculation

KHD Humboldt Wedag International AG'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 )
=4.662/( (97.351+103.021)/ 2 )
=4.662/100.186
=4.65 %

KHD Humboldt Wedag International AG's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=4.324/( (101.761+103.021)/ 2 )
=4.324/102.391
=4.22 %

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


KHD Humboldt Wedag International AG  (OTCPK:KHDHF) 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
=4.324/102.391
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4.324 / 261.566)*(261.566 / 253.002)*(253.002 / 102.391)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.65 %*1.0338*2.4709
=ROA %*Equity Multiplier
=1.71 %*2.4709
=4.22 %

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
=4.324/102.391
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4.324 / 6.694) * (6.694 / 1.046) * (1.046 / 261.566) * (261.566 / 253.002) * (253.002 / 102.391)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.646 * 6.3996 * 0.4 % * 1.0338 * 2.4709
=4.22 %

Note: The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.


KHD Humboldt Wedag International AG ROE % Related Terms

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


KHD Humboldt Wedag International AG (KHD Humboldt Wedag International AG) Business Description

Traded in Other Exchanges
Address
Von-der-Wettern-Straße 4a, Cologne, DEU, 51149
KHD Humboldt Wedag International AG is a Germany-based company engaged in equipment supplier and service provider for the cement industry. It operates in two business segments including the Capex segment and the Plant services segment, and the majority of revenue comes from the Capex. Its Geographic area of the company is India, Russia, North America, the Rest of Asia, Germany, China, and Others. India generates the majority of the revenue.

KHD Humboldt Wedag International AG (KHD Humboldt Wedag International AG) Headlines

From GuruFocus

Investment Analysis: KHD Humboldt Wedag International Ltd.

By guruek Above Average Odds 08-27-2010