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TE Connectivity (NYSE:TEL) ROE %

: 14.33% (As of Dec. 2022)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. TE Connectivity's annualized net income for the quarter that ended in Dec. 2022 was $1,588 Mil. TE Connectivity's average Total Stockholders Equity over the quarter that ended in Dec. 2022 was $11,083 Mil. Therefore, TE Connectivity's annualized ROE % for the quarter that ended in Dec. 2022 was 14.33%.

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

TEL' s ROE % Range Over the Past 10 Years
Min: -2.42   Med: 21.37   Max: 26.03
Current: 20.89

During the past 13 years, TE Connectivity's highest ROE % was 26.03%. The lowest was -2.42%. And the median was 21.37%.

TEL's ROE % is ranked better than
86.73% of 2352 companies
in the Hardware industry
Industry Median: 7.19 vs TEL: 20.89

TE Connectivity ROE % Historical Data

The historical data trend for TE Connectivity'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.

TE Connectivity Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.92 17.23 -2.42 22.59 22.65

TE Connectivity 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 20.91 20.87 22.76 26.67 14.33

Competitive Comparison

For the Electronic Components subindustry, TE Connectivity'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.

   

TE Connectivity ROE % Distribution

For the Hardware industry and Technology sector, TE Connectivity's ROE % distribution charts can be found below:

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



TE Connectivity ROE % Calculation

TE Connectivity's annualized ROE % for the fiscal year that ended in Sep. 2022 is calculated as

ROE %=Net Income (A: Sep. 2022 )/( (Total Stockholders Equity (A: Sep. 2021 )+Total Stockholders Equity (A: Sep. 2022 ))/ count )
=2428/( (10634+10802)/ 2 )
=2428/10718
=22.65 %

TE Connectivity's annualized ROE % for the quarter that ended in Dec. 2022 is calculated as

ROE %=Net Income (Q: Dec. 2022 )/( (Total Stockholders Equity (Q: Sep. 2022 )+Total Stockholders Equity (Q: Dec. 2022 ))/ count )
=1588/( (10802+11364)/ 2 )
=1588/11083
=14.33 %

* 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. 2022) net income data. ROE % is displayed in the 30-year financial page.


TE Connectivity  (NYSE:TEL) 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. 2022 )
=Net Income/Total Stockholders Equity
=1588/11083
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1588 / 15364)*(15364 / 21067.5)*(21067.5 / 11083)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.34 %*0.7293*1.9009
=ROA %*Equity Multiplier
=7.54 %*1.9009
=14.33 %

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. 2022 )
=Net Income/Total Stockholders Equity
=1588/11083
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1588 / 1940) * (1940 / 2488) * (2488 / 15364) * (15364 / 21067.5) * (21067.5 / 11083)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8186 * 0.7797 * 16.19 % * 0.7293 * 1.9009
=14.33 %

Note: The net income data used here is four times the quarterly (Dec. 2022) net income data. The Revenue data used here is four times the quarterly (Dec. 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.


TE Connectivity ROE % Related Terms

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


TE Connectivity (NYSE:TEL) Business Description

TE Connectivity logo
Traded in Other Exchanges
Address
Muhlenstrasse 26, Schaffhausen, CHE, CH-8200
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE Connectivity has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Syaru Shirley Lin director
Aaron Kyle Stucki officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE, BERWYN PA 19312
Lynn A Dugle director 4803 STONECROFT BOULEVARD, CHANTILLY VA 20151
Dawn C Willoughby director 1221 BROADWAY, OAKLAND CA 94612
Kevin N Rock officer: President, Industrial Solution 1050 WESTLAKES DRIVE, BERWYN PA 19312
David M Kerko director C/O KKR, 9 WEST 57TH STREET, 41ST FLOOR, NEW YORK NY 10019
Shadrak W Kroeger officer: Pres., Communications Solution 1050 WESTLAKES DRIVE, BERWYN PA 19312
Abhijit Y Talwalkar director ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Heath A Mitts officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Tim Murphy officer: SVP & CHRO 1050 WESTLAKES DRIVE, BERWYN PA 19312
Mark Trudeau director COVIDIEN PLC, 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Carol Anthony Davidson director
Laura Wright director 2702 LOVE FIELD DRIVE, P.O. BOX 36611, DALLAS TX 75235-1611
John S Jenkins officer: EVP & General Counsel 1050 WESTLAKES DRIVE, BERWYN PA 19312
Bradley Alan Gambill officer: SVP, Strategy & Business Dev. 1050 WESTLAKES DRIVE, BERWYN PA 19312

TE Connectivity (NYSE:TEL) Headlines

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