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Orsted AS (CHIX:ORSTEC) ROE % : -28.99% (As of Dec. 2024)


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What is Orsted AS ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Orsted AS's annualized net income for the quarter that ended in Dec. 2024 was kr-24,648 Mil. Orsted AS's average Total Stockholders Equity over the quarter that ended in Dec. 2024 was kr85,018 Mil. Therefore, Orsted AS's annualized ROE % for the quarter that ended in Dec. 2024 was -28.99%.

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

CHIX:ORSTEc' s ROE % Range Over the Past 10 Years
Min: -24.5   Med: 14.44   Max: 32.29
Current: -0.25

During the past 12 years, Orsted AS's highest ROE % was 32.29%. The lowest was -24.50%. And the median was 14.44%.

CHIX:ORSTEc's ROE % is ranked worse than
72.94% of 425 companies
in the Utilities - Independent Power Producers industry
Industry Median: 5.72 vs CHIX:ORSTEc: -0.25

Orsted AS ROE % Historical Data

The historical data trend for Orsted AS'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.

Orsted AS ROE % Chart

Orsted AS Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.24 12.41 17.43 -24.50 -0.26

Orsted AS Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -1.68 13.01 -8.55 24.62 -28.99

Competitive Comparison of Orsted AS's ROE %

For the Utilities - Renewable subindustry, Orsted AS'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.


Orsted AS's ROE % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Orsted AS's ROE % distribution charts can be found below:

* The bar in red indicates where Orsted AS's ROE % falls into.


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Orsted AS ROE % Calculation

Orsted AS's annualized ROE % for the fiscal year that ended in Dec. 2024 is calculated as

ROE %=Net Income (A: Dec. 2024 )/( (Total Stockholders Equity (A: Dec. 2023 )+Total Stockholders Equity (A: Dec. 2024 ))/ count )
=-206/( (75885+83093)/ 2 )
=-206/79489
=-0.26 %

Orsted AS's annualized ROE % for the quarter that ended in Dec. 2024 is calculated as

ROE %=Net Income (Q: Dec. 2024 )/( (Total Stockholders Equity (Q: Sep. 2024 )+Total Stockholders Equity (Q: Dec. 2024 ))/ count )
=-24648/( (86942+83093)/ 2 )
=-24648/85017.5
=-28.99 %

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


Orsted AS  (CHIX:ORSTEc) 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. 2024 )
=Net Income/Total Stockholders Equity
=-24648/85017.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-24648 / 70732)*(70732 / 294563.5)*(294563.5 / 85017.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=-34.85 %*0.2401*3.4647
=ROA %*Equity Multiplier
=-8.37 %*3.4647
=-28.99 %

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. 2024 )
=Net Income/Total Stockholders Equity
=-24648/85017.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-24648 / -27044) * (-27044 / 23128) * (23128 / 70732) * (70732 / 294563.5) * (294563.5 / 85017.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9114 * -1.1693 * 32.7 % * 0.2401 * 3.4647
=-28.99 %

Note: The net income data used here is four times the quarterly (Dec. 2024) net income data. The Revenue data used here is four times the quarterly (Dec. 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.


Orsted AS ROE % Related Terms

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


Orsted AS Business Description

Address
Kraftvaerksvej 53, Skaerbaek, Fredericia, DNK, DK-7000
Danish company Orsted was named Dong Energy until the sale of all its oil and gas fields to Ineos in 2017, soon after the May 2016 initial public offering. Orsted is now focused on renewable assets, especially offshore wind farms. It operated 9.9 gigawatts of offshore wind farms at the end of 2024. The United Kingdom is the biggest country of operation, ahead of Germany and Denmark. The group intends to develop its footprint outside Europe with projects in Taiwan and in the US. Orsted also operates 4.8 GW of onshore wind and solar assets concentrated in the United States. The company is involved in more traditional utilities business like conventional power plants and gas supply, but these activities are noncore.

Orsted AS Headlines

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