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Orion Oyj (FRA:OFK) ROE % : 76.28% (As of Sep. 2024)


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What is Orion Oyj ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Orion Oyj's annualized net income for the quarter that ended in Sep. 2024 was €643 Mil. Orion Oyj's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was €843 Mil. Therefore, Orion Oyj's annualized ROE % for the quarter that ended in Sep. 2024 was 76.28%.

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

FRA:OFK' s ROE % Range Over the Past 10 Years
Min: 24.11   Med: 35.87   Max: 45.47
Current: 40.22

During the past 13 years, Orion Oyj's highest ROE % was 45.47%. The lowest was 24.11%. And the median was 35.87%.

FRA:OFK's ROE % is ranked better than
96.37% of 965 companies
in the Drug Manufacturers industry
Industry Median: 4.49 vs FRA:OFK: 40.22

Orion Oyj ROE % Historical Data

The historical data trend for Orion Oyj'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.

Orion Oyj ROE % Chart

Orion Oyj 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 25.82 29.11 26.20 42.21 24.11

Orion Oyj 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 30.54 34.76 21.93 28.31 76.28

Competitive Comparison of Orion Oyj's ROE %

For the Drug Manufacturers - General subindustry, Orion Oyj'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.


Orion Oyj's ROE % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Orion Oyj's ROE % distribution charts can be found below:

* The bar in red indicates where Orion Oyj's ROE % falls into.



Orion Oyj ROE % Calculation

Orion Oyj'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 )
=216.8/( (908.1+890.1)/ 2 )
=216.8/899.1
=24.11 %

Orion Oyj'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 )
=643.2/( (762+924.4)/ 2 )
=643.2/843.2
=76.28 %

* 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.


Orion Oyj  (FRA:OFK) 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
=643.2/843.2
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(643.2 / 1885.2)*(1885.2 / 1532.5)*(1532.5 / 843.2)
=Net Margin %*Asset Turnover*Equity Multiplier
=34.12 %*1.2301*1.8175
=ROA %*Equity Multiplier
=41.97 %*1.8175
=76.28 %

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
=643.2/843.2
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (643.2 / 805.6) * (805.6 / 808) * (808 / 1885.2) * (1885.2 / 1532.5) * (1532.5 / 843.2)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7984 * 0.997 * 42.86 % * 1.2301 * 1.8175
=76.28 %

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.


Orion Oyj ROE % Related Terms

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Orion Oyj Business Description

Address
Orionintie 1, Espoo, FIN, FI-02200
Orion Oyj is a globally operating Finnish pharmaceutical company that develops, manufactures, and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients. The company predominantly focuses on treatments for central nervous system disorders, oncology, and respiratory diseases. Orion's customers include specialists and general practitioners, veterinarians, pharmacies, hospitals, and laboratories. Orion mainly serves Finland but also has a presence in other European countries, North America and other countries.

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