GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Galaxy Surfactants Ltd (BOM:540935) » Definitions » ROE %

Galaxy Surfactants (BOM:540935) ROE % : 14.07% (As of Dec. 2023)


View and export this data going back to 2018. Start your Free Trial

What is Galaxy Surfactants ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Galaxy Surfactants's annualized net income for the quarter that ended in Dec. 2023 was ₹2,855 Mil. Galaxy Surfactants's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was ₹20,294 Mil. Therefore, Galaxy Surfactants's annualized ROE % for the quarter that ended in Dec. 2023 was 14.07%.

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

BOM:540935' s ROE % Range Over the Past 10 Years
Min: 16.67   Med: 24.19   Max: 28.8
Current: 16.67

During the past 11 years, Galaxy Surfactants's highest ROE % was 28.80%. The lowest was 16.67%. And the median was 24.19%.

BOM:540935's ROE % is ranked better than
86.16% of 1539 companies
in the Chemicals industry
Industry Median: 5.42 vs BOM:540935: 16.67

Galaxy Surfactants ROE % Historical Data

The historical data trend for Galaxy Surfactants'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.

Galaxy Surfactants ROE % Chart

Galaxy Surfactants Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.94 23.70 25.51 18.28 22.04

Galaxy Surfactants 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 24.31 19.24 15.97 15.26 14.07

Competitive Comparison of Galaxy Surfactants's ROE %

For the Specialty Chemicals subindustry, Galaxy Surfactants'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.


Galaxy Surfactants's ROE % Distribution in the Chemicals Industry

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

* The bar in red indicates where Galaxy Surfactants's ROE % falls into.



Galaxy Surfactants ROE % Calculation

Galaxy Surfactants's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=3809.8/( (15743.5+18825.5)/ 2 )
=3809.8/17284.5
=22.04 %

Galaxy Surfactants'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 )
=2854.8/( (20294.2+0)/ 1 )
=2854.8/20294.2
=14.07 %

* 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.


Galaxy Surfactants  (BOM:540935) 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
=2854.8/20294.2
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2854.8 / 37619.6)*(37619.6 / 27453.9)*(27453.9 / 20294.2)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.59 %*1.3703*1.3528
=ROA %*Equity Multiplier
=10.4 %*1.3528
=14.07 %

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
=2854.8/20294.2
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2854.8 / 3513.6) * (3513.6 / 3494.4) * (3494.4 / 37619.6) * (37619.6 / 27453.9) * (27453.9 / 20294.2)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8125 * 1.0055 * 9.29 % * 1.3703 * 1.3528
=14.07 %

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.


Galaxy Surfactants ROE % Related Terms

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


Galaxy Surfactants (BOM:540935) Business Description

Traded in Other Exchanges
Address
C-49/2, TTC Industrial Area, Pawne, Navi Mumbai, MH, IND, 400 703
Galaxy Surfactants Ltd is an India-based company that engages in the manufacture and marketing of specialty chemicals for the home and personal care industry. It offers a wide range of specialty chemicals which includes Surfactants, Mild Surfactants, Rheology Modifiers, Pearlizing Agents, Conditioning Agents, blends based on innovative concepts, proteins, Quats for personal care. It has one segment which is the home and personal care ingredients.

Galaxy Surfactants (BOM:540935) Headlines

No Headlines