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KLC (KinderCare Learning) ROE % : 23.61% (As of Sep. 2024)


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What is KinderCare Learning ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. KinderCare Learning's annualized net income for the quarter that ended in Sep. 2024 was $56 Mil. KinderCare Learning's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $236 Mil. Therefore, KinderCare Learning's annualized ROE % for the quarter that ended in Sep. 2024 was 23.61%.

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

KLC' s ROE % Range Over the Past 10 Years
Min: -69.1   Med: 22.43   Max: 66.09
Current: 8.81

During the past 6 years, KinderCare Learning's highest ROE % was 66.09%. The lowest was -69.10%. And the median was 22.43%.

KLC's ROE % is ranked better than
55.38% of 260 companies
in the Education industry
Industry Median: 6.735 vs KLC: 8.81

KinderCare Learning ROE % Historical Data

The historical data trend for KinderCare Learning'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.

KinderCare Learning ROE % Chart

KinderCare Learning Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial -12.22 -69.10 45.12 66.09 22.43

KinderCare Learning Quarterly Data
Dec18 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Sep22 Dec22 Jun23 Sep23 Dec23 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 - - 11.70 - 23.61

Competitive Comparison of KinderCare Learning's ROE %

For the Education & Training Services subindustry, KinderCare Learning'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.


KinderCare Learning's ROE % Distribution in the Education Industry

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

* The bar in red indicates where KinderCare Learning's ROE % falls into.



KinderCare Learning ROE % Calculation

KinderCare Learning'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 )
=102.558/( (407.686+506.88)/ 2 )
=102.558/457.283
=22.43 %

KinderCare Learning'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 )
=55.836/( (237.353+235.575)/ 2 )
=55.836/236.464
=23.61 %

* 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.


KinderCare Learning  (NYSE:KLC) 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
=55.836/236.464
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(55.836 / 2685.904)*(2685.904 / 3695.2915)*(3695.2915 / 236.464)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.08 %*0.7268*15.6273
=ROA %*Equity Multiplier
=1.51 %*15.6273
=23.61 %

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
=55.836/236.464
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (55.836 / 72.452) * (72.452 / 222.528) * (222.528 / 2685.904) * (2685.904 / 3695.2915) * (3695.2915 / 236.464)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7707 * 0.3256 * 8.29 % * 0.7268 * 15.6273
=23.61 %

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.


KinderCare Learning ROE % Related Terms

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KinderCare Learning Business Description

Traded in Other Exchanges
N/A
Address
650 NE Holladay, Suite 1400, Portland, OR, USA, 97232
KinderCare Learning Companies Inc is a private provider of early childhood education and care services (ECE) in the United States. It serves children ranging from 6 weeks to 12 years of age across its market- leading footprint of around 1,480 early childhood education centers with a capacity of more than 194,000 children and contracts for more than 650 before- and after-school sites located in 40 states and the District of Columbia. Its three go-to-market channels are KinderCare Learning Centers, KinderCare Education at Work, and Champions.