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Clicks Group (JSE:CLS) ROE % : 54.35% (As of Aug. 2024)


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What is Clicks Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Clicks Group's annualized net income for the quarter that ended in Aug. 2024 was R3,131 Mil. Clicks Group's average Total Stockholders Equity over the quarter that ended in Aug. 2024 was R5,761 Mil. Therefore, Clicks Group's annualized ROE % for the quarter that ended in Aug. 2024 was 54.35%.

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

JSE:CLS' s ROE % Range Over the Past 10 Years
Min: 36.76   Med: 43.98   Max: 53.33
Current: 48.67

During the past 13 years, Clicks Group's highest ROE % was 53.33%. The lowest was 36.76%. And the median was 43.98%.

JSE:CLS's ROE % is ranked better than
96.33% of 626 companies
in the Healthcare Providers & Services industry
Industry Median: 4.715 vs JSE:CLS: 48.67

Clicks Group ROE % Historical Data

The historical data trend for Clicks Group'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.

Clicks Group ROE % Chart

Clicks Group Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.68 36.76 50.24 43.51 46.32

Clicks Group Semi-Annual Data
Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24
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 55.12 40.32 47.41 45.42 54.35

Competitive Comparison of Clicks Group's ROE %

For the Pharmaceutical Retailers subindustry, Clicks Group'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.


Clicks Group's ROE % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Clicks Group's ROE % distribution charts can be found below:

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



Clicks Group ROE % Calculation

Clicks Group's annualized ROE % for the fiscal year that ended in Aug. 2024 is calculated as

ROE %=Net Income (A: Aug. 2024 )/( (Total Stockholders Equity (A: Aug. 2023 )+Total Stockholders Equity (A: Aug. 2024 ))/ count )
=2837.057/( (5964.814+6285.539)/ 2 )
=2837.057/6125.1765
=46.32 %

Clicks Group's annualized ROE % for the quarter that ended in Aug. 2024 is calculated as

ROE %=Net Income (Q: Aug. 2024 )/( (Total Stockholders Equity (Q: Feb. 2024 )+Total Stockholders Equity (Q: Aug. 2024 ))/ count )
=3130.658/( (5235.769+6285.539)/ 2 )
=3130.658/5760.654
=54.35 %

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


Clicks Group  (JSE:CLS) 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: Aug. 2024 )
=Net Income/Total Stockholders Equity
=3130.658/5760.654
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3130.658 / 47267.146)*(47267.146 / 19703.9105)*(19703.9105 / 5760.654)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.62 %*2.3989*3.4204
=ROA %*Equity Multiplier
=15.88 %*3.4204
=54.35 %

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: Aug. 2024 )
=Net Income/Total Stockholders Equity
=3130.658/5760.654
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (3130.658 / 4308.198) * (4308.198 / 1887.924) * (1887.924 / 47267.146) * (47267.146 / 19703.9105) * (19703.9105 / 5760.654)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7267 * 2.282 * 3.99 % * 2.3989 * 3.4204
=54.35 %

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


Clicks Group ROE % Related Terms

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


Clicks Group Business Description

Traded in Other Exchanges
Address
Cnr Searle and Pontac Streets, PO Box 5142, Cape Town, ZAF, 8001
Clicks Group Ltd operates pharmaceutical health and beauty retail stores. The company predominantly operates a retail pharmacy chain in South Africa, with a limited number of operations in bordering countries. The company targets middle-to upper-income consumers. Clicks' business focuses on consistent product sourcing, product development, and measured store expansion. The company has a portfolio of retail franchise brands including The Body Shop, M-Kem, and Sorbet among others. It uses United Pharmaceutical Distributors' capabilities for the groups' integrated channel to the healthcare market. The company's reportable segments are; Retail, which generates maximum revenue, and Distribution.