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Ventas (Ventas) ROE % : -3.76% (As of Dec. 2023)


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What is Ventas ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ventas's annualized net income for the quarter that ended in Dec. 2023 was $-363 Mil. Ventas's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $9,653 Mil. Therefore, Ventas's annualized ROE % for the quarter that ended in Dec. 2023 was -3.76%.

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

VTR' s ROE % Range Over the Past 10 Years
Min: -0.45   Med: 4.23   Max: 12.72
Current: -0.41

During the past 13 years, Ventas's highest ROE % was 12.72%. The lowest was -0.45%. And the median was 4.23%.

VTR's ROE % is ranked worse than
72.38% of 800 companies
in the REITs industry
Industry Median: 4.21 vs VTR: -0.41

Ventas ROE % Historical Data

The historical data trend for Ventas'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.

Ventas ROE % Chart

Ventas 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 4.19 4.26 0.47 -0.45 -0.42

Ventas Quarterly Data
Mar19 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 -1.76 0.70 4.15 -2.88 -3.76

Competitive Comparison of Ventas's ROE %

For the REIT - Healthcare Facilities subindustry, Ventas'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.


Ventas's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Ventas's ROE % distribution charts can be found below:

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



Ventas ROE % Calculation

Ventas'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 )
=-40.973/( (10152.968+9488.058)/ 2 )
=-40.973/9820.513
=-0.42 %

Ventas'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 )
=-363.276/( (9817.559+9488.058)/ 2 )
=-363.276/9652.8085
=-3.76 %

* 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.


Ventas  (NYSE:VTR) 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
=-363.276/9652.8085
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-363.276 / 4657.568)*(4657.568 / 24846.021)*(24846.021 / 9652.8085)
=Net Margin %*Asset Turnover*Equity Multiplier
=-7.8 %*0.1875*2.574
=ROA %*Equity Multiplier
=-1.46 %*2.574
=-3.76 %

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
=-363.276/9652.8085
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-363.276 / -320.072) * (-320.072 / 93.612) * (93.612 / 4657.568) * (4657.568 / 24846.021) * (24846.021 / 9652.8085)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.135 * -3.4191 * 2.01 % * 0.1875 * 2.574
=-3.76 %

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.


Ventas ROE % Related Terms

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


Ventas (Ventas) Business Description

Traded in Other Exchanges
Address
353 North Clark Street, Suite 3300, Chicago, IL, USA, 60654
Ventas owns a diversified healthcare portfolio of nearly 1,400 in-place properties spread across the senior housing, medical office, hospital, life science, and skilled nursing/post-acute care. The portfolio includes over 40 properties in Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to the United States. The firm also owns mortgages and other loans, contributing about 3% of net operating income.
Executives
Walter C Rakowich director 14100 E 35TH PL, AURORA CO 80011
Debra A Cafaro director, officer: Chairman, President and CEO 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
Sumit Roy director 600 LA TERRAZA BOULEVARD, ESCONDIDO CA 92025
Michael J Embler director C/O NMI HOLDINGS, INC., 2100 POWELL STREET, EMERYVILLE CA 94608
Robert D. Reed director 47 DONALD DRIVE, ORINDA CA 94563
James D Shelton director 3901 TURTLE CREEK BLVD. #12, DALLAS TX 75219
Richard I Gilchrist director 5950 SHERRY LANE, SUITE 700, DALLAS TX 75225
Robert F Probst officer: EVP, CFO and Acting CAO 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
Gregory R Liebbe officer: SVP, Chief Accounting Officer 500 N. HURSTBOURNE PARKWAY, SUITE 200, LOUISVILLE KY 40222
Maurice S Smith director 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
Marguerite M Nader director 2S601 AVENUE LA TOURS, OAK BROOK IL 60523
Carey S. Roberts officer: EVP and GC C/O VENTAS, INC., 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
James Justin Hutchens officer: EVP Sr Housing North America C/O VENTAS, INC., 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
John D. Cobb officer: SVP & Chief Investment Officer 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
Sean P. Nolan director C/O INTERMUNE, INC., 3280 BAYSHORE BLVD., BRISBANE CA 94005

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