ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. BKW AG's annualized net income for the quarter that ended in Dec. 2023 was CHF303 Mil. BKW AG's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was CHF4,548 Mil. Therefore, BKW AG's annualized ROE % for the quarter that ended in Dec. 2023 was 6.66%.
The historical rank and industry rank for BKW AG's ROE % or its related term are showing as below:
XSWX:BKW'
s ROE % Range Over the Past 10 Years
Min: 5.88 Med: 11.14 Max: 13.78
Current: 10.89
During the past 13 years, BKW AG's highest ROE % was 13.78%. The lowest was 5.88%. And the median was 11.14%.
The historical data trend for BKW AG'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.
For the Utilities - Renewable subindustry, BKW AG'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.
BKW AG's ROE % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, BKW AG's ROE % distribution charts can be found below:
* The bar in red indicates where BKW AG's ROE % falls into.
BKW AG ROE % Calculation
BKW AG's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as
* 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 (Dec. 2023) net income data.
ROE % is displayed in the 30-year financial page.
BKW AG (XSWX:BKW) 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:
Note:
The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.
BKW AG ROE % Related Terms
Thank you for viewing the detailed overview of BKW AG's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
BKW AG is an electric utility company in which the Swiss state of Bern holds a majority stake. The company segments its operations into energy, grid, and services businesses. The energy division builds, operates, and maintains the company's European power plants. While BKW controls a portfolio of wind, hydroelectric, gas, coal, and nuclear facilities, its wind power sites are responsible for most of its total energy generation. The majority of BKW's revenue comes from its energy division in the form of electricity sales to the broader European market and other power plants. The company's networks division, which builds and operates electrical distribution grids for customers outside of its primary markets of Switzerland and Italy, also represents a substantial revenue stream.
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