GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Distribution Solutions Group Inc (NAS:DSGR) » Definitions » ROE %

DSGR (Distribution Solutions Group) ROE % : 13.15% (As of Sep. 2024)


View and export this data going back to 1990. Start your Free Trial

What is Distribution Solutions Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Distribution Solutions Group's annualized net income for the quarter that ended in Sep. 2024 was $88 Mil. Distribution Solutions Group's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $667 Mil. Therefore, Distribution Solutions Group's annualized ROE % for the quarter that ended in Sep. 2024 was 13.15%.

The historical rank and industry rank for Distribution Solutions Group's ROE % or its related term are showing as below:

DSGR' s ROE % Range Over the Past 10 Years
Min: -6.84   Med: 1.26   Max: 38.4
Current: 0.34

During the past 13 years, Distribution Solutions Group's highest ROE % was 38.40%. The lowest was -6.84%. And the median was 1.26%.

DSGR's ROE % is ranked worse than
84.21% of 152 companies
in the Industrial Distribution industry
Industry Median: 8.44 vs DSGR: 0.34

Distribution Solutions Group ROE % Historical Data

The historical data trend for Distribution Solutions Group'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.

Distribution Solutions Group ROE % Chart

Distribution Solutions Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.97 13.12 -3.51 2.03 -1.46

Distribution Solutions Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -0.93 -9.77 -3.18 1.16 13.15

Competitive Comparison of Distribution Solutions Group's ROE %

For the Industrial Distribution subindustry, Distribution Solutions Group'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.


Distribution Solutions Group's ROE % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Distribution Solutions Group's ROE % distribution charts can be found below:

* The bar in red indicates where Distribution Solutions Group's ROE % falls into.



Distribution Solutions Group ROE % Calculation

Distribution Solutions Group's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-8.967/( (562.995+661.601)/ 2 )
=-8.967/612.298
=-1.46 %

Distribution Solutions Group's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=87.684/( (653.304+680.762)/ 2 )
=87.684/667.033
=13.15 %

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


Distribution Solutions Group  (NAS:DSGR) 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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=87.684/667.033
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(87.684 / 1872.076)*(1872.076 / 1696.247)*(1696.247 / 667.033)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.68 %*1.1037*2.543
=ROA %*Equity Multiplier
=5.17 %*2.543
=13.15 %

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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=87.684/667.033
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (87.684 / 11.656) * (11.656 / 75.788) * (75.788 / 1872.076) * (1872.076 / 1696.247) * (1696.247 / 667.033)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 7.5226 * 0.1538 * 4.05 % * 1.1037 * 2.543
=13.15 %

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


Distribution Solutions Group ROE % Related Terms

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


Distribution Solutions Group Business Description

Traded in Other Exchanges
Address
301 Commerce Street, Suite 1700, Fort Worth, TX, USA, 76102
Distribution Solutions Group Inc is an industrial distributor of maintenance and repair supplies. It has three operating segments namely Lawson, TestEquity, and Gexpro Services, of which key revenue is derived from the TestEquity segment. The TestEquity segment is a distributor of test and measurement equipment and solutions, electronic production supplies, and tool kits from its manufacturer partners supporting the technology, aerospace, defense, automotive, electronics, education, and medical industries.
Executives
Robert Zamarripa director 8770 W. BYRN MAWR AVE. SUITE 900, C/O DISTRIBUTION SOLUTIONS GROUP, INC., CHICAGO IL 60631
Cesar Lanuza officer: President and CEO 8770 W. BYRN MAWR AVE. SUITE 900, C/O LAWSON PRODUCTS, CHICAGO IL 60634
Lkcm Headwater Investments Iv, L.p. 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
Robert R Connors officer: See Remarks POST OFFICE 792, MUNCIE IN 47308-0792
Russ Frazee officer: See Remarks 8770 W. BYRN MAWR AVE. SUITE 900, C/O LAWSON PRODUCTS, CHICAGO IL 60634
King Luther Capital Management Corp 10 percent owner 301 COMMERCE SUITE 1600, FORT WORTH TX 76102
301 Hw Opus Investors, Llc 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
Lkcm Te Investors, Llc 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
Lkcm Headwater Ii Sidecar Partnership, L.p. 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
Lkcm Headwater Investments Iii, L.p. 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
David S Lambert officer: VP, Controller and CAO 770 W. BRYN MAWR AVE., SUITE 900, CHICAGO IL 60631
Bianca Rhodes director 8770 W. BRYN MAWR AVE. SUITE 900, C/O LAWSON PRODUCTS, CHICAGO IL 60622
Richard D Pufpaf officer: SVP and General Counsel 8770 W. BRYN MAWR AVE. SUITE 900, CHICAGO IL 60631
Matthew Jay Brown officer: SVP, Sales C/O LAWSON PRODUCTS, INC., 8770 WEST BRYN MAWR AVE, SUITE 900, CHICAGO IL 60631
Shane Mccarthy officer: SVP, Operations C/O LAWSON PRODUCTS, INC., 8770 WEST BRYN MAWR AVENUE, SUITE 900, CHICAGO IL 60631