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Chr. Hansen Holding A/S (Chr. Hansen Holding A/S) ROE % : 13.01% (As of May. 2023)


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What is Chr. Hansen Holding A/S ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Chr. Hansen Holding A/S's annualized net income for the quarter that ended in May. 2023 was $255 Mil. Chr. Hansen Holding A/S's average Total Stockholders Equity over the quarter that ended in May. 2023 was $1,958 Mil. Therefore, Chr. Hansen Holding A/S's annualized ROE % for the quarter that ended in May. 2023 was 13.01%.

The historical rank and industry rank for Chr. Hansen Holding A/S's ROE % or its related term are showing as below:

CHYHY' s ROE % Range Over the Past 10 Years
Min: 12.82   Med: 28.28   Max: 67.06
Current: 12.82

During the past 13 years, Chr. Hansen Holding A/S's highest ROE % was 67.06%. The lowest was 12.82%. And the median was 28.28%.

CHYHY's ROE % is not ranked
in the Chemicals industry.
Industry Median: 5.235 vs CHYHY: 12.82

Chr. Hansen Holding A/S ROE % Historical Data

The historical data trend for Chr. Hansen Holding A/S'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.

Chr. Hansen Holding A/S ROE % Chart

Chr. Hansen Holding A/S Annual Data
Trend Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.31 31.31 29.84 66.96 12.13

Chr. Hansen Holding A/S Quarterly Data
Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23
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 13.33 13.67 11.15 13.63 13.01

Competitive Comparison of Chr. Hansen Holding A/S's ROE %

For the Specialty Chemicals subindustry, Chr. Hansen Holding A/S'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.


Chr. Hansen Holding A/S's ROE % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Chr. Hansen Holding A/S's ROE % distribution charts can be found below:

* The bar in red indicates where Chr. Hansen Holding A/S's ROE % falls into.



Chr. Hansen Holding A/S ROE % Calculation

Chr. Hansen Holding A/S's annualized ROE % for the fiscal year that ended in Aug. 2022 is calculated as

ROE %=Net Income (A: Aug. 2022 )/( (Total Stockholders Equity (A: Aug. 2021 )+Total Stockholders Equity (A: Aug. 2022 ))/ count )
=228.065/( (1913.059+1847.923)/ 2 )
=228.065/1880.491
=12.13 %

Chr. Hansen Holding A/S's annualized ROE % for the quarter that ended in May. 2023 is calculated as

ROE %=Net Income (Q: May. 2023 )/( (Total Stockholders Equity (Q: Feb. 2023 )+Total Stockholders Equity (Q: May. 2023 ))/ count )
=254.784/( (1915.096+2001.848)/ 2 )
=254.784/1958.472
=13.01 %

* 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 (May. 2023) net income data. ROE % is displayed in the 30-year financial page.


Chr. Hansen Holding A/S  (OTCPK:CHYHY) 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: May. 2023 )
=Net Income/Total Stockholders Equity
=254.784/1958.472
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(254.784 / 1455.652)*(1455.652 / 3630.5105)*(3630.5105 / 1958.472)
=Net Margin %*Asset Turnover*Equity Multiplier
=17.5 %*0.4009*1.8537
=ROA %*Equity Multiplier
=7.02 %*1.8537
=13.01 %

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: May. 2023 )
=Net Income/Total Stockholders Equity
=254.784/1958.472
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (254.784 / 334.784) * (334.784 / 400.868) * (400.868 / 1455.652) * (1455.652 / 3630.5105) * (3630.5105 / 1958.472)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.761 * 0.8351 * 27.54 % * 0.4009 * 1.8537
=13.01 %

Note: The net income data used here is four times the quarterly (May. 2023) net income data. The Revenue data used here is four times the quarterly (May. 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.


Chr. Hansen Holding A/S ROE % Related Terms

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Chr. Hansen Holding A/S (Chr. Hansen Holding A/S) Business Description

Traded in Other Exchanges
Address
Boge Alle 10-12, Horsholm, DNK, 2970
Founded in 1874 and relisted in 2010 after five years of private ownership, Chr. Hansen is a global bioscience company with more than 3,200 employees across 30 countries. Its segments include food cultures and enzymes that produce and sell innovative cultures, enzymes, and probiotic products that help determine the taste, flavor, texture, shelf-life, nutritional value, and health benefits of a variety of consumer products in the food industry, especially in the dairy industry; and health and nutrition that produce and sell products for the dietary supplement, over-the-counter pharmaceutical, infant formula, animal feed, and plant protection industries.

Chr. Hansen Holding A/S (Chr. Hansen Holding A/S) Headlines