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Williams-Sonoma (NYSE:WSM) ROE %

: 55.28% (As of Oct. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Williams-Sonoma's annualized net income for the quarter that ended in Oct. 2023 was $949 Mil. Williams-Sonoma's average Total Stockholders Equity over the quarter that ended in Oct. 2023 was $1,717 Mil. Therefore, Williams-Sonoma's annualized ROE % for the quarter that ended in Oct. 2023 was 55.28%.

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

WSM' s ROE % Range Over the Past 10 Years
Min: 21.17   Med: 26.94   Max: 67.95
Current: 59.28

During the past 13 years, Williams-Sonoma's highest ROE % was 67.95%. The lowest was 21.17%. And the median was 26.94%.

WSM's ROE % is ranked better than
96.12% of 1082 companies
in the Retail - Cyclical industry
Industry Median: 5.965 vs WSM: 59.28

Williams-Sonoma ROE % Historical Data

The historical data trend for Williams-Sonoma'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.

Williams-Sonoma Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.29 29.78 47.16 67.95 67.03

Williams-Sonoma Quarterly Data
Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23
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 74.83 91.20 39.53 52.21 55.28

Competitive Comparison

For the Specialty Retail subindustry, Williams-Sonoma'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.


Williams-Sonoma ROE % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Williams-Sonoma's ROE % distribution charts can be found below:

* The bar in red indicates where Williams-Sonoma's ROE % falls into.



Williams-Sonoma ROE % Calculation

Williams-Sonoma's annualized ROE % for the fiscal year that ended in Jan. 2023 is calculated as

ROE %=Net Income (A: Jan. 2023 )/( (Total Stockholders Equity (A: Jan. 2022 )+Total Stockholders Equity (A: Jan. 2023 ))/ count )
=1127.904/( (1664.207+1701.051)/ 2 )
=1127.904/1682.629
=67.03 %

Williams-Sonoma's annualized ROE % for the quarter that ended in Oct. 2023 is calculated as

ROE %=Net Income (Q: Oct. 2023 )/( (Total Stockholders Equity (Q: Jul. 2023 )+Total Stockholders Equity (Q: Oct. 2023 ))/ count )
=949.14/( (1620.955+1813.234)/ 2 )
=949.14/1717.0945
=55.28 %

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


Williams-Sonoma  (NYSE:WSM) 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: Oct. 2023 )
=Net Income/Total Stockholders Equity
=949.14/1717.0945
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(949.14 / 7414.6)*(7414.6 / 4727.79)*(4727.79 / 1717.0945)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.8 %*1.5683*2.7534
=ROA %*Equity Multiplier
=20.07 %*2.7534
=55.28 %

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: Oct. 2023 )
=Net Income/Total Stockholders Equity
=949.14/1717.0945
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (949.14 / 1289.036) * (1289.036 / 1260.308) * (1260.308 / 7414.6) * (7414.6 / 4727.79) * (4727.79 / 1717.0945)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7363 * 1.0228 * 17 % * 1.5683 * 2.7534
=55.28 %

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


Williams-Sonoma ROE % Related Terms

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


Williams-Sonoma (NYSE:WSM) Business Description

Traded in Other Exchanges
Address
3250 Van Ness Avenue, San Francisco, CA, USA, 94109
With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the $300 billion domestic home category, focused on expanding its exposure in the B2B, marketplace, and franchise areas. Namesake Williams-Sonoma (163 stores) offers high-end cooking essentials, while Pottery Barn (191) provides casual home accessories. Brand extensions include Pottery Barn Kids (46) and PBteen. West Elm (123) is an emerging concept for young professionals, and Rejuvenation (10) offers lighting and house parts. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
Executives
Laura Alber officer: PRESIDENT, POTTERY BARN BRANDS
Karalyn Smith officer: EVP CHIEF TALENT OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Marta Benson officer: PRESIDENT POTTERY BARN BRAND C/O RESTORATION HARDWARE, 15 KOCH ROAD, SUITE J, CORTE MADERA CA 94925
Jeremy Brooks officer: CHIEF ACCOUNTING OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Jeffrey Howie officer: EVP CHIEF FINANCIAL OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Julie Whalen officer: VP, CONTROLLER 3260 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Ryan Ross officer: PRESIDENT WS BRAND 3250 VAN NESS AVE., SAN FRANCISCO CA 94109
Sabrina Simmons director GAP INC., 2 FOLSOM STREET, SAN FRANCISCO CA 94105
Anne A. Finucane director ONE CVS DRIVE, WOONSOCKET RI 02895
David Randolph King officer: SVP GENERAL COUNSEL 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Paula B Pretlow director C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Alex Bellos officer: PRESIDENT WEST ELM BRAND C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Esi Eggleston Bracey director C/O SIX FLAGS ENTERTAINMENT CORPORATION, 1000 BALLPARK WAY, SUITE 400, ARLINGTON TX 76011
Grace Puma Whiteford director C/O WILLIAM SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Bellamy Adrian D P director C/O GAP, INC., 2 FOLSOM ST., SAN FRANCISCO CA 94105