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Sazgar Engineering Works (KAR:SAZEW) ROE % : 138.13% (As of Sep. 2024)


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What is Sazgar Engineering Works ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sazgar Engineering Works's annualized net income for the quarter that ended in Sep. 2024 was ₨16,870 Mil. Sazgar Engineering Works's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was ₨12,213 Mil. Therefore, Sazgar Engineering Works's annualized ROE % for the quarter that ended in Sep. 2024 was 138.13%.

The historical rank and industry rank for Sazgar Engineering Works's ROE % or its related term are showing as below:

KAR:SAZEW' s ROE % Range Over the Past 10 Years
Min: 34.14   Med: 78.03   Max: 121.91
Current: 102.12

During the past 2 years, Sazgar Engineering Works's highest ROE % was 121.91%. The lowest was 34.14%. And the median was 78.03%.

KAR:SAZEW's ROE % is ranked better than
99.37% of 1279 companies
in the Vehicles & Parts industry
Industry Median: 6.61 vs KAR:SAZEW: 102.12

Sazgar Engineering Works ROE % Historical Data

The historical data trend for Sazgar Engineering Works'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.

Sazgar Engineering Works ROE % Chart

Sazgar Engineering Works Annual Data
Trend Jun23 Jun24
ROE %
34.14 121.91

Sazgar Engineering Works Quarterly Data
Mar23 Jun23 Sep23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial 64.68 90.36 170.41 161.96 138.13

Competitive Comparison of Sazgar Engineering Works's ROE %

For the Auto Manufacturers subindustry, Sazgar Engineering Works'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.


Sazgar Engineering Works's ROE % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Sazgar Engineering Works's ROE % distribution charts can be found below:

* The bar in red indicates where Sazgar Engineering Works's ROE % falls into.



Sazgar Engineering Works ROE % Calculation

Sazgar Engineering Works's annualized ROE % for the fiscal year that ended in Jun. 2024 is calculated as

ROE %=Net Income (A: Jun. 2024 )/( (Total Stockholders Equity (A: Jun. 2023 )+Total Stockholders Equity (A: Jun. 2024 ))/ count )
=7935.677/( (2915.048+10104.087)/ 2 )
=7935.677/6509.5675
=121.91 %

Sazgar Engineering Works'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 )
=16869.892/( (10104.087+14321.56)/ 2 )
=16869.892/12212.8235
=138.13 %

* 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.


Sazgar Engineering Works  (KAR:SAZEW) 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
=16869.892/12212.8235
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(16869.892 / 105327.976)*(105327.976 / 32397.982)*(32397.982 / 12212.8235)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.02 %*3.2511*2.6528
=ROA %*Equity Multiplier
=52.08 %*2.6528
=138.13 %

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
=16869.892/12212.8235
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (16869.892 / 26460.192) * (26460.192 / 26690.012) * (26690.012 / 105327.976) * (105327.976 / 32397.982) * (32397.982 / 12212.8235)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6376 * 0.9914 * 25.34 % * 3.2511 * 2.6528
=138.13 %

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.


Sazgar Engineering Works ROE % Related Terms

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Sazgar Engineering Works Business Description

Traded in Other Exchanges
N/A
Address
88-Ali Town, Raiwind Road, Thokar Niaz Baig, Lahore, PB, PAK
Sazgar Engineering Works Ltd manufactures auto rickshaws, tractors wheel rims and home appliances. Its products include 3 Wheelers and Tractor Automotive Wheel Rims. The operating segments of the company are Automobiles-Three Wheeler, Automotive Parts, Household Appliances and Automobiles-Four Wheeler. Substantial amount of revenue for the company is generated from the Automobiles-Four Wheeler segment.

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