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Vontier (Vontier) ROE % : 51.49% (As of Dec. 2023)


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What is Vontier ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Vontier's annualized net income for the quarter that ended in Dec. 2023 was $425 Mil. Vontier's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $825 Mil. Therefore, Vontier's annualized ROE % for the quarter that ended in Dec. 2023 was 51.49%.

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

VNT' s ROE % Range Over the Past 10 Years
Min: 21.54   Med: 42.81   Max: 109.01
Current: 52.95

During the past 7 years, Vontier's highest ROE % was 109.01%. The lowest was 21.54%. And the median was 42.81%.

VNT's ROE % is ranked better than
98.59% of 2410 companies
in the Hardware industry
Industry Median: 4.7 vs VNT: 52.95

Vontier ROE % Historical Data

The historical data trend for Vontier'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.

Vontier ROE % Chart

Vontier Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial 24.24 34.22 109.01 70.01 51.39

Vontier Quarterly Data
Dec18 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 50.44 54.62 58.40 49.78 51.49

Competitive Comparison of Vontier's ROE %

For the Scientific & Technical Instruments subindustry, Vontier'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.


Vontier's ROE % Distribution in the Hardware Industry

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

* The bar in red indicates where Vontier's ROE % falls into.



Vontier ROE % Calculation

Vontier'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 )
=376.9/( (576.5+890.4)/ 2 )
=376.9/733.45
=51.39 %

Vontier's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=424.8/( (759.5+890.4)/ 2 )
=424.8/824.95
=51.49 %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.


Vontier  (NYSE:VNT) 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
=424.8/824.95
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(424.8 / 3156)*(3156 / 4257.95)*(4257.95 / 824.95)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.46 %*0.7412*5.1615
=ROA %*Equity Multiplier
=9.98 %*5.1615
=51.49 %

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
=424.8/824.95
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (424.8 / 497.6) * (497.6 / 585.6) * (585.6 / 3156) * (3156 / 4257.95) * (4257.95 / 824.95)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8537 * 0.8497 * 18.56 % * 0.7412 * 5.1615
=51.49 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (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.


Vontier ROE % Related Terms

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


Vontier (Vontier) Business Description

Traded in Other Exchanges
Address
5438 Wade Park Boulevard, Suite 600, Raleigh, NC, USA, 27607
Vontier, spun off from Fortive in 2020, is an industrial technology company with a portfolio of transportation and mobility solutions. The company offers a wide array of products and services, including fueling equipment, sensors, point-of-sale and payment systems, telematics, and equipment used by vehicle mechanics and technicians. Vontier generated approximately $3.2 billion in sales and $578 million in operating profit in 2022.
Executives
David M Foulkes director C/O BRUNSWICK CORPORATION, 26125 N RIVERWOOD BLVD. SUITE 500, METTAWA IL 60045-3420
Anshooman Aga officer: SVP, Chief Financial Officer PO BOX 85587, SAN DIEGO CA 92186-5587
Christopher J Klein director 520 LAKE COOK ROAD, DEERFIELD IL 60015
Gloria R. Boyland director 6100 N. WESTERN AVENUE, OKLAHOMA CITY OK 73118
Mark D Morelli officer: See Remarks 205 CROSSPOINT PARKWAY, GETZVILLE NY 14068
Kathryn K. Rowen officer: See Remarks C/O VONTIER CORPORATION, 5420 WADE PARK BLVD., SUITE 206, RALEIGH NC 27607
Andrew Miller director 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Aaron W Saak officer: Pres & CEO, Mobility Solutions C/O VONTIER CORPORATION, 5438 WADE PARK BLVD., SUITE 600, RALEIGH NC 27607
David H. Naemura officer: See Remarks C/O GATES INDUSTRIAL CORPORATION PLC, 1144 FIFTEENTH STREET, SUITE 1400, DENVER CO 80202
Paul V. Shimp officer: VP, Chief Accounting Officer C/O VONTIER CORPORATION, 5438 WADE PARK BLVD., SUITE 600, RALEIGH NC 27607
Lynn Ross officer: See Remarks 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084
Maryrose Sylvester director C/O 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Robert L Eatroff director C/O VONTIER CORPORATION, 5438 WADE PARK BLVD STE 600, RALEIGH NC 27607
Karen C Francis director 200 SW 1ST AVE, SUITE 1600, FORT LAUDERDALE FL 33301
Andrew R. Nash officer: See Remarks C/O VONTIER CORPORATION, 5420 WADE PARK BLVD, SUITE 206, RALEIGH NC 27607