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First Horizon (First Horizon) ROE % : 8.59% (As of Mar. 2024)


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What is First Horizon ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. First Horizon's annualized net income for the quarter that ended in Mar. 2024 was $768 Mil. First Horizon's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $8,937 Mil. Therefore, First Horizon's annualized ROE % for the quarter that ended in Mar. 2024 was 8.59%.

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

FHN' s ROE % Range Over the Past 10 Years
Min: 3.71   Med: 10.16   Max: 13.21
Current: 9.6

During the past 13 years, First Horizon's highest ROE % was 13.21%. The lowest was 3.71%. And the median was 10.16%.

FHN's ROE % is ranked worse than
50.51% of 1473 companies
in the Banks industry
Industry Median: 9.66 vs FHN: 9.60

First Horizon ROE % Historical Data

The historical data trend for First Horizon'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.

First Horizon ROE % Chart

First Horizon 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 9.51 13.21 12.32 10.94 10.40

First Horizon Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 11.92 15.06 6.39 8.41 8.59

Competitive Comparison of First Horizon's ROE %

For the Banks - Regional subindustry, First Horizon'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.


First Horizon's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, First Horizon's ROE % distribution charts can be found below:

* The bar in red indicates where First Horizon's ROE % falls into.



First Horizon ROE % Calculation

First Horizon'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 )
=897/( (8252+8996)/ 2 )
=897/8624
=10.40 %

First Horizon's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=768/( (8996+8878)/ 2 )
=768/8937
=8.59 %

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


First Horizon  (NYSE:FHN) 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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=768/8937
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(768 / 3192)*(3192 / 81730)*(81730 / 8937)
=Net Margin %*Asset Turnover*Equity Multiplier
=24.06 %*0.0391*9.1451
=ROA %*Equity Multiplier
=0.94 %*9.1451
=8.59 %

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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=768/8937
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (768 / 1016) * (1016 / 3192) * (3192 / 81730) * (81730 / 8937)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7559 * 31.83 % * 0.0391 * 9.1451
=8.59 %

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


First Horizon ROE % Related Terms

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


First Horizon (First Horizon) Business Description

Address
165 Madison Avenue, Memphis, TN, USA, 38103
First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.
Executives
Velia Carboni director 165 MADISON AVE, MEMPHIS TN 38103
William H Fenstermaker director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Vicki R Palmer director PO BOX 723040, ATLANTA GA 30339
Rosa Sugranes director 2975 N.W. 77TH AVE, DORAL FL 33132
Reed Colin V director
Wendy P Davidson director 2210 WEST OAKLAWN DRIVE, SPRINGDALE AR 72762
D Bryan Jordan officer: EVP and CFO
Terry Lawson Akins officer: Sr. EVP, Chief Risk Officer 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
David T Popwell officer: EVP-Regional Bkg & Bkg COO 165 MADISON AVENUE, MEMPHIS TN 38103
Tammy Locascio officer: Sr. EVP, Chief HR Officer 165 MADISON AVE, MEMPHIS TN 38103
Daryl G Byrd director, officer: Executive Chairman of Board 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Anthony J Restel officer: SEVP Chief Operating Officer 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Hope Dmuchowski officer: Sr. EVP & CFO 165 MADISON AVE, MEMPHIS TN 38103
Losch William C Iii officer: EVP and CFO 165 MADISON AVENUE, MEMPHIS TN 38103
Elizabeth A Ardoin officer: SEVP, Chief Communications Ofc 200 WEST CONGRESS STREET, LAFAYETTE LA 70501