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H2O Retailing (FRA:HKU) ROE % : 17.64% (As of Dec. 2023)


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What is H2O Retailing ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. H2O Retailing's annualized net income for the quarter that ended in Dec. 2023 was €292 Mil. H2O Retailing's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was €1,658 Mil. Therefore, H2O Retailing's annualized ROE % for the quarter that ended in Dec. 2023 was 17.64%.

The historical rank and industry rank for H2O Retailing's ROE % or its related term are showing as below:

FRA:HKU' s ROE % Range Over the Past 10 Years
Min: -10.46   Med: 5.36   Max: 8.44
Current: 8.44

During the past 13 years, H2O Retailing's highest ROE % was 8.44%. The lowest was -10.46%. And the median was 5.36%.

FRA:HKU's ROE % is ranked worse than
54.97% of 302 companies
in the Retail - Defensive industry
Industry Median: 9.665 vs FRA:HKU: 8.44

H2O Retailing ROE % Historical Data

The historical data trend for H2O Retailing'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.

H2O Retailing ROE % Chart

H2O Retailing Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.16 -10.01 4.21 6.41 7.91

H2O Retailing 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 8.75 5.15 4.48 17.64 6.09

Competitive Comparison of H2O Retailing's ROE %

For the Grocery Stores subindustry, H2O Retailing'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.


H2O Retailing's ROE % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, H2O Retailing's ROE % distribution charts can be found below:

* The bar in red indicates where H2O Retailing's ROE % falls into.



H2O Retailing ROE % Calculation

H2O Retailing's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=134.513/( (1747.06+1652.73)/ 2 )
=134.513/1699.895
=7.91 %

H2O Retailing'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 )
=292.408/( (1633.965+1681.325)/ 2 )
=292.408/1657.645
=17.64 %

* 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.


H2O Retailing  (FRA:HKU) 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
=292.408/1657.645
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(292.408 / 4507.152)*(4507.152 / 4481.7755)*(4481.7755 / 1657.645)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.49 %*1.0057*2.7037
=ROA %*Equity Multiplier
=6.53 %*2.7037
=17.64 %

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
=292.408/1657.645
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (292.408 / 385.904) * (385.904 / 313.044) * (313.044 / 4507.152) * (4507.152 / 4481.7755) * (4481.7755 / 1657.645)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7577 * 1.2327 * 6.95 % * 1.0057 * 2.7037
=17.64 %

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.


H2O Retailing ROE % Related Terms

Thank you for viewing the detailed overview of H2O Retailing's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


H2O Retailing (FRA:HKU) Business Description

Traded in Other Exchanges
Address
8-7 Kakuda-cho, Kita-ku, Osaka, JPN, 530-8350
H2O Retailing Corp is a Japan-based retailer that provides a broad range of merchandise to meet consumers' needs, from daily needs to special products. The company's core business is the department store business, which includes both the Hankyu and Hanshin department store chains. Superstore business is the company's another major business arm, including the Izumiya and Hankyu Oasis store chains. H2O Retailing also runs a specialty store business, engaged in providing cosmetics, ladies' footwear, and other products and services. In addition to retail businesses, the company operates other businesses as well, such as hotels and restaurants.

H2O Retailing (FRA:HKU) Headlines

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