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Holland Colours (XAMS:HOLCO) ROE %

: 13.90% (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. Holland Colours's annualized net income for the quarter that ended in Sep. 2022 was €8.2 Mil. Holland Colours's average Total Stockholders Equity over the quarter that ended in Sep. 2022 was €58.9 Mil. Therefore, Holland Colours's annualized ROE % for the quarter that ended in Sep. 2022 was 13.90%.

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

XAMS:HOLCO' s ROE % Range Over the Past 10 Years
Min: 11.62   Med: 15.38   Max: 19.51
Current: 14.6

During the past 13 years, Holland Colours's highest ROE % was 19.51%. The lowest was 11.62%. And the median was 15.38%.

XAMS:HOLCO's ROE % is ranked better than
74.48% of 1454 companies
in the Chemicals industry
Industry Median: 7.24 vs XAMS:HOLCO: 14.60

Holland Colours ROE % Historical Data

The historical data trend for Holland Colours'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.

Holland Colours Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.10 15.47 17.68 19.51 18.92

Holland Colours Semi-Annual Data
Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22
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 18.65 20.11 23.57 15.25 13.90

Competitive Comparison

For the Specialty Chemicals subindustry, Holland Colours'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.

   

Holland Colours ROE % Distribution

For the Chemicals industry and Basic Materials sector, Holland Colours's ROE % distribution charts can be found below:

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



Holland Colours ROE % Calculation

Holland Colours's annualized ROE % for the fiscal year that ended in Mar. 2022 is calculated as

ROE %=Net Income (A: Mar. 2022 )/( (Total Stockholders Equity (A: Mar. 2021 )+Total Stockholders Equity (A: Mar. 2022 ))/ count )
=10.179/( (50.258+57.33)/ 2 )
=10.179/53.794
=18.92 %

Holland Colours's annualized ROE % for the quarter that ended in Sep. 2022 is calculated as

ROE %=Net Income (Q: Sep. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Sep. 2022 ))/ count )
=8.18/( (57.33+60.38)/ 2 )
=8.18/58.855
=13.90 %

* 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 two times the semi-annual (Sep. 2022) net income data. ROE % is displayed in the 30-year financial page.


Holland Colours  (XAMS:HOLCO) 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
=8.18/58.855
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(8.18 / 125.842)*(125.842 / 79.2575)*(79.2575 / 58.855)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.5 %*1.5878*1.3467
=ROA %*Equity Multiplier
=10.32 %*1.3467
=13.90 %

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
=8.18/58.855
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (8.18 / 10.532) * (10.532 / 10.608) * (10.608 / 125.842) * (125.842 / 79.2575) * (79.2575 / 58.855)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7767 * 0.9928 * 8.43 % * 1.5878 * 1.3467
=13.90 %

Note: The net income data used here is two times the semi-annual (Sep. 2022) net income data. The Revenue data used here is two times the semi-annual (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.


Holland Colours ROE % Related Terms

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


Holland Colours (XAMS:HOLCO) Business Description

Holland Colours logo
Traded in Other Exchanges
Address
Halvemaanweg 1, P.O. Box 720, Apeldoorn, GE, NLD, 7323 RW
Holland Colours creates and manufactures high-quality solid and liquid colorants, masterbatches and additives. The company and its subsidiaries manufacture, distribute, and sell color concentrates. Its products are designed to be well suited for coloring rigid and flexible polyvinyl chloride, pet, polyolefins and other polymers. The company serves many different markets which include building and construction but is not limited to, profiles, pipes, siding, and cladding. In addition, to serving these markets, it also offers color concentrates for coatings, elastomers, adhesives and other applications. The company operates geographically across Europe, the United States of America and Asia.

Holland Colours (XAMS:HOLCO) Headlines

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