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IGGRF (IG Group Holdings) ROE % : 18.81% (As of May. 2024)


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What is IG Group Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. IG Group Holdings's annualized net income for the quarter that ended in May. 2024 was $442 Mil. IG Group Holdings's average Total Stockholders Equity over the quarter that ended in May. 2024 was $2,352 Mil. Therefore, IG Group Holdings's annualized ROE % for the quarter that ended in May. 2024 was 18.81%.

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

IGGRF' s ROE % Range Over the Past 10 Years
Min: 15.76   Med: 25.2   Max: 35.95
Current: 16.01

During the past 13 years, IG Group Holdings's highest ROE % was 35.95%. The lowest was 15.76%. And the median was 25.20%.

IGGRF's ROE % is ranked better than
76.4% of 767 companies
in the Capital Markets industry
Industry Median: 5.68 vs IGGRF: 16.01

IG Group Holdings ROE % Historical Data

The historical data trend for IG Group Holdings'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.

IG Group Holdings ROE % Chart

IG Group Holdings Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.48 38.13 30.44 18.09 15.87

IG Group Holdings Semi-Annual Data
Nov14 May15 Nov15 May16 Nov16 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.80 18.84 17.53 13.67 18.81

Competitive Comparison of IG Group Holdings's ROE %

For the Capital Markets subindustry, IG Group Holdings'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.


IG Group Holdings's ROE % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, IG Group Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where IG Group Holdings's ROE % falls into.



IG Group Holdings ROE % Calculation

IG Group Holdings'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 )
=389.001/( (2515.106+2388.748)/ 2 )
=389.001/2451.927
=15.87 %

IG Group Holdings'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 )
=442.478/( (2315.299+2388.748)/ 2 )
=442.478/2352.0235
=18.81 %

* 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.


IG Group Holdings  (OTCPK:IGGRF) 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
=442.478/2352.0235
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(442.478 / 1127.686)*(1127.686 / 3585.966)*(3585.966 / 2352.0235)
=Net Margin %*Asset Turnover*Equity Multiplier
=39.24 %*0.3145*1.5246
=ROA %*Equity Multiplier
=12.34 %*1.5246
=18.81 %

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
=442.478/2352.0235
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (442.478 / 567.384) * (567.384 / 352.718) * (352.718 / 1127.686) * (1127.686 / 3585.966) * (3585.966 / 2352.0235)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7799 * 1.6086 * 31.28 % * 0.3145 * 1.5246
=18.81 %

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.


IG Group Holdings ROE % Related Terms

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IG Group Holdings Business Description

Traded in Other Exchanges
Address
Cannon Bridge House, 25 Dowgate Hill, London, GBR, EC4R 2YA
IG Group Holdings PLC provides online trading services to its clients. The majority of the company's revenue stems from its derivative products and contracts for difference (CFDs). The company operates through various segments which are The U.K. segment which derives its revenue from financial spread bets, CFDs, binary options, and execution-only stockbroking. The Australian segment derives its revenue from CFDs and binary options. The European segment derives its revenue from CFDs, binary options, and execution-only stockbroking. The Rest of the World segment derives its revenue from the operation of a regulated futures and options exchange as well as CFDs and binary options. The company generates more than half of its revenue from the U.K., followed by Europe and Australia.