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Progressive (NYSE:PGR) ROE %

: 3.26% (As of Sep. 2022)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Progressive's annualized net income for the quarter that ended in Sep. 2022 was $496 Mil. Progressive's average Total Stockholders Equity over the quarter that ended in Sep. 2022 was $15,214 Mil. Therefore, Progressive's annualized ROE % for the quarter that ended in Sep. 2022 was 3.26%.

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

PGR' s ROE % Range Over the Past 10 Years
Min: 4.42   Med: 19.06   Max: 37.15
Current: 4.42

During the past 13 years, Progressive's highest ROE % was 37.15%. The lowest was 4.42%. And the median was 19.06%.

PGR's ROE % is ranked worse than
65.45% of 495 companies
in the Insurance industry
Industry Median: 7.86 vs PGR: 4.42

Progressive ROE % Historical Data

The historical data trend for Progressive'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.

Progressive Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.01 32.42 37.15 19.00 4.23

Progressive Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 20.93 7.12 -13.28 3.26 21.56

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Progressive'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.

   

Progressive ROE % Distribution

For the Insurance industry and Financial Services sector, Progressive's ROE % distribution charts can be found below:

* The bar in red indicates where Progressive's ROE % falls in comparison to its industry or sector. The grey bar indicates the ROE %'s extreme value range as defined by GuruFocus.



Progressive ROE % Calculation

Progressive'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 )
=3350.9/( (17038.6+18231.6)/ 2 )
=3350.9/17635.1
=19.00 %

Progressive'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 )
=496.4/( (15652.7+14776.2)/ 2 )
=496.4/15214.45
=3.26 %

* 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.


Progressive  (NYSE:PGR) 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
=496.4/15214.45
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(496.4 / 51097.6)*(51097.6 / 74290.7)*(74290.7 / 15214.45)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.97 %*0.6878*4.8829
=ROA %*Equity Multiplier
=0.67 %*4.8829
=3.26 %

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
=496.4/15214.45
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (496.4 / 570) * (570 / 822.4) * (822.4 / 51097.6) * (51097.6 / 74290.7) * (74290.7 / 15214.45)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 0.8709 * 0.6931 * 1.61 % * 0.6878 * 4.8829
=3.26 %

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.


Progressive ROE % Related Terms

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


Progressive (NYSE:PGR) Business Description

Progressive logo
Traded in Other Exchanges
Address
6300 Wilson Mills Road, Mayfield Village, OH, USA, 44143
Progressive underwrites private and commercial auto insurance and specialty lines; it has over 20 million personal auto policies in force and is the fourth-largest auto insurer in the United States. Progressive markets its policies through independent insurance agencies in the U.S. and Canada and directly via the internet and telephone. Its premiums are split roughly equally between the agent and the direct channel. The company also offers commercial auto policies and entered homeowners insurance through an acquisition in 2015.
Executives
Pamela Craig director C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601
Clawson William L. Ii officer: Chief Human Resources Officer C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Remi Kent officer: Chief Marketing Officer 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Jonathan S. Bauer officer: Chief Investment Officer 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Mariann Wojtkun Marshall officer: Chief Accounting Officer C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS RD., MAYFIELD VILLAGE OH 44143
Jan E Tighe director C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
Barbara R Snyder director 127 PUBLIC SQUARE, CLEVELAND OH 44114
Andrew J Quigg officer: Chief Strategy Officer C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Philip Bleser director 8760 CLAY ROAD SUITE 100, HOUSTON TX 77494
Steven Broz officer: Chief Information Officer C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Lori A Niederst officer: CRM President C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Karen Bailo officer: Commercial Lines President 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Daniel P Mascaro officer: Vice Pres, Secretary and CLO C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
John Jo Murphy officer: Claims President C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Patrick K Callahan officer: Personal Lines President C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143

Progressive (NYSE:PGR) Headlines

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