GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » East Buy Holding Ltd (HKSE:01797) » Definitions » ROE %

East Buy Holding (HKSE:01797) ROE % : 71.06% (As of May. 2024)


View and export this data going back to 2019. Start your Free Trial

What is East Buy Holding ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. East Buy Holding's annualized net income for the quarter that ended in May. 2024 was HK$3,176 Mil. East Buy Holding's average Total Stockholders Equity over the quarter that ended in May. 2024 was HK$4,470 Mil. Therefore, East Buy Holding's annualized ROE % for the quarter that ended in May. 2024 was 71.06%.

The historical rank and industry rank for East Buy Holding's ROE % or its related term are showing as below:

HKSE:01797' s ROE % Range Over the Past 10 Years
Min: -89.79   Med: 9.28   Max: 46.11
Current: 46.11

During the past 9 years, East Buy Holding's highest ROE % was 46.11%. The lowest was -89.79%. And the median was 9.28%.

HKSE:01797's ROE % is ranked better than
94.55% of 257 companies
in the Education industry
Industry Median: 6.11 vs HKSE:01797: 46.11

East Buy Holding ROE % Historical Data

The historical data trend for East Buy Holding'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.

East Buy Holding ROE % Chart

East Buy Holding Annual Data
Trend May16 May17 May18 May19 May20 May21 May22 May23 May24
ROE %
Get a 7-Day Free Trial Premium Member Only -32.31 -89.79 -28.78 43.00 43.63

East Buy Holding Semi-Annual Data
May16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24
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 1.22 57.74 30.69 16.04 71.06

Competitive Comparison of East Buy Holding's ROE %

For the Education & Training Services subindustry, East Buy Holding'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.


East Buy Holding's ROE % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, East Buy Holding's ROE % distribution charts can be found below:

* The bar in red indicates where East Buy Holding's ROE % falls into.



East Buy Holding ROE % Calculation

East Buy Holding's annualized ROE % for the fiscal year that ended in May. 2024 is calculated as

ROE %=Net Income (A: May. 2024 )/( (Total Stockholders Equity (A: May. 2023 )+Total Stockholders Equity (A: May. 2024 ))/ count )
=1857.202/( (3145.745+5367.155)/ 2 )
=1857.202/4256.45
=43.63 %

East Buy Holding's annualized ROE % for the quarter that ended in May. 2024 is calculated as

ROE %=Net Income (Q: May. 2024 )/( (Total Stockholders Equity (Q: Nov. 2023 )+Total Stockholders Equity (Q: May. 2024 ))/ count )
=3176.112/( (3572.526+5367.155)/ 2 )
=3176.112/4469.8405
=71.06 %

* 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 two times the semi-annual (May. 2024) net income data. ROE % is displayed in the 30-year financial page.


East Buy Holding  (HKSE:01797) 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. 2024 )
=Net Income/Total Stockholders Equity
=3176.112/4469.8405
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3176.112 / 8058.494)*(8058.494 / 6096.133)*(6096.133 / 4469.8405)
=Net Margin %*Asset Turnover*Equity Multiplier
=39.41 %*1.3219*1.3638
=ROA %*Equity Multiplier
=52.1 %*1.3638
=71.06 %

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. 2024 )
=Net Income/Total Stockholders Equity
=3176.112/4469.8405
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (3176.112 / 120.098) * (120.098 / 12.302) * (12.302 / 8058.494) * (8058.494 / 6096.133) * (6096.133 / 4469.8405)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 26.446 * 9.7625 * 0.15 % * 1.3219 * 1.3638
=71.06 %

Note: The net income data used here is two times the semi-annual (May. 2024) net income data. The Revenue data used here is two times the semi-annual (May. 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.


East Buy Holding ROE % Related Terms

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


East Buy Holding Business Description

Traded in Other Exchanges
Address
2 Haidian East Third Road, Level 18, South Wing, Haidian District, Beijing, CHN, 100080
East Buy Holding Ltd is a live-streaming platform that focuses on selecting premium products for customers. The company operates in three reportable segments: Private Label Products and Livestreaming E-Commerce, College Education, and Institutional Customers. The majority of its revenue comes from private label products and the direct e-commerce segment, i.e., direct online commerce with private label products sold to individual customers and providing commission services.
Executives
New Oriental Education & Technology Group Inc. 2101 Beneficial owner
Yu Min Hong 2101 Beneficial owner
Image Frame Investment (hk) Limited
Tencent Holdings Limited

East Buy Holding Headlines

No Headlines