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Sopharma Trading AD (XBUL:SFT) ROE % : 17.62% (As of Dec. 2023)


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What is Sopharma Trading AD ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sopharma Trading AD's annualized net income for the quarter that ended in Dec. 2023 was лв21 Mil. Sopharma Trading AD's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was лв121 Mil. Therefore, Sopharma Trading AD's annualized ROE % for the quarter that ended in Dec. 2023 was 17.62%.

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

XBUL:SFT' s ROE % Range Over the Past 10 Years
Min: 9.95   Med: 14.64   Max: 26.84
Current: 26.28

During the past 13 years, Sopharma Trading AD's highest ROE % was 26.84%. The lowest was 9.95%. And the median was 14.64%.

XBUL:SFT's ROE % is ranked better than
93.68% of 95 companies
in the Medical Distribution industry
Industry Median: 7.02 vs XBUL:SFT: 26.28

Sopharma Trading AD ROE % Historical Data

The historical data trend for Sopharma Trading AD'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.

Sopharma Trading AD ROE % Chart

Sopharma Trading AD 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 12.87 15.03 9.95 10.12 26.84

Sopharma Trading AD 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 -57.33 44.48 30.15 15.41 17.62

Competitive Comparison of Sopharma Trading AD's ROE %

For the Medical Distribution subindustry, Sopharma Trading AD'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.


Sopharma Trading AD's ROE % Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Sopharma Trading AD's ROE % distribution charts can be found below:

* The bar in red indicates where Sopharma Trading AD's ROE % falls into.



Sopharma Trading AD ROE % Calculation

Sopharma Trading AD'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 )
=29.208/( (94.545+123.106)/ 2 )
=29.208/108.8255
=26.84 %

Sopharma Trading AD'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 )
=21.284/( (118.441+123.106)/ 2 )
=21.284/120.7735
=17.62 %

* 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.


Sopharma Trading AD  (XBUL:SFT) 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
=21.284/120.7735
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(21.284 / 1794.352)*(1794.352 / 635.918)*(635.918 / 120.7735)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.19 %*2.8217*5.2654
=ROA %*Equity Multiplier
=3.36 %*5.2654
=17.62 %

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
=21.284/120.7735
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (21.284 / 26.128) * (26.128 / 42.16) * (42.16 / 1794.352) * (1794.352 / 635.918) * (635.918 / 120.7735)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8146 * 0.6197 * 2.35 % * 2.8217 * 5.2654
=17.62 %

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.


Sopharma Trading AD ROE % Related Terms

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


Sopharma Trading AD (XBUL:SFT) Business Description

Traded in Other Exchanges
N/A
Address
Sunrise Street, Lachezar Stanchev, 5 Sopharma, Business Towers, Building A Floor 12, Sofia, BGR, 1756
Sopharma Trading AD is a Bulgaria based company operating in the pharmaceutical sector. The company is engaged in the distribution of pharmaceutical items, including a portfolio of international brands, medicinal products, medical supplies, sanitary and hygienic materials, vitamins, nutritional supplements, cosmetics, medical equipment, and equipment. It also provides turnkey solutions for the construction of medical and hospital establishments. In addition, the group also caters logistics solutions for import, storage, and distribution of goods to end customers.

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