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Peter Warren Automotive Holdings (ASX:PWR) ROE % : 5.38% (As of Jun. 2024)


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What is Peter Warren Automotive Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Peter Warren Automotive Holdings's annualized net income for the quarter that ended in Jun. 2024 was A$28 Mil. Peter Warren Automotive Holdings's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was A$517 Mil. Therefore, Peter Warren Automotive Holdings's annualized ROE % for the quarter that ended in Jun. 2024 was 5.38%.

The historical rank and industry rank for Peter Warren Automotive Holdings's ROE % or its related term are showing as below:

ASX:PWR' s ROE % Range Over the Past 10 Years
Min: 6.99   Med: 10.15   Max: 12.58
Current: 6.99

During the past 4 years, Peter Warren Automotive Holdings's highest ROE % was 12.58%. The lowest was 6.99%. And the median was 10.15%.

ASX:PWR's ROE % is ranked better than
51.6% of 1279 companies
in the Vehicles & Parts industry
Industry Median: 6.61 vs ASX:PWR: 6.99

Peter Warren Automotive Holdings ROE % Historical Data

The historical data trend for Peter Warren Automotive Holdings'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.

Peter Warren Automotive Holdings ROE % Chart

Peter Warren Automotive Holdings Annual Data
Trend Jun21 Jun22 Jun23 Jun24
ROE %
8.95 12.58 11.35 7.00

Peter Warren Automotive Holdings Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROE % Get a 7-Day Free Trial 13.99 12.49 10.47 8.61 5.38

Competitive Comparison of Peter Warren Automotive Holdings's ROE %

For the Auto & Truck Dealerships subindustry, Peter Warren Automotive Holdings'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.


Peter Warren Automotive Holdings's ROE % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Peter Warren Automotive Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Peter Warren Automotive Holdings's ROE % falls into.



Peter Warren Automotive Holdings ROE % Calculation

Peter Warren Automotive Holdings's annualized ROE % for the fiscal year that ended in Jun. 2024 is calculated as

ROE %=Net Income (A: Jun. 2024 )/( (Total Stockholders Equity (A: Jun. 2023 )+Total Stockholders Equity (A: Jun. 2024 ))/ count )
=36.085/( (514.241+516.477)/ 2 )
=36.085/515.359
=7.00 %

Peter Warren Automotive Holdings's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=27.78/( (517.142+516.477)/ 2 )
=27.78/516.8095
=5.38 %

* 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 (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.


Peter Warren Automotive Holdings  (ASX:PWR) 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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=27.78/516.8095
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(27.78 / 2542.572)*(2542.572 / 1397.2985)*(1397.2985 / 516.8095)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.09 %*1.8196*2.7037
=ROA %*Equity Multiplier
=1.98 %*2.7037
=5.38 %

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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=27.78/516.8095
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (27.78 / 43.198) * (43.198 / 88.676) * (88.676 / 2542.572) * (2542.572 / 1397.2985) * (1397.2985 / 516.8095)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6431 * 0.4871 * 3.49 % * 1.8196 * 2.7037
=5.38 %

Note: The net income data used here is two times the semi-annual (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 2024) 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.


Peter Warren Automotive Holdings ROE % Related Terms

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Peter Warren Automotive Holdings Business Description

Traded in Other Exchanges
N/A
Address
13 Hume Highway, Warwick Farm, Sydney, NSW, AUS, 2170
Peter Warren Automotive Holdings Ltd is a dealership group operating in Australia. The company operates an integrated new and used car retailing business providing the full range of sales and support including parts, service, finance insurance, and aftermarket products to an extensive list of long-term customers, many of whom have purchased multiple vehicles over a lifetime. The company has two operating segments Vehicle Retailing and property segment, The company generates the majority of its revenue from the Vehicle Retailing segment, which offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products.