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Key Tronic (Key Tronic) ROE % : 3.29% (As of Dec. 2023)


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What is Key Tronic ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Key Tronic's annualized net income for the quarter that ended in Dec. 2023 was $4.3 Mil. Key Tronic's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $131.8 Mil. Therefore, Key Tronic's annualized ROE % for the quarter that ended in Dec. 2023 was 3.29%.

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

KTCC' s ROE % Range Over the Past 10 Years
Min: -6.87   Med: 4.09   Max: 7.7
Current: 3.42

During the past 13 years, Key Tronic's highest ROE % was 7.70%. The lowest was -6.87%. And the median was 4.09%.

KTCC's ROE % is ranked worse than
54.91% of 2413 companies
in the Hardware industry
Industry Median: 4.57 vs KTCC: 3.42

Key Tronic ROE % Historical Data

The historical data trend for Key Tronic'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.

Key Tronic ROE % Chart

Key Tronic Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.87 4.14 3.63 2.72 4.04

Key Tronic Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 3.05 6.16 3.27 1.02 3.29

Competitive Comparison of Key Tronic's ROE %

For the Computer Hardware subindustry, Key Tronic'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.


Key Tronic's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Key Tronic's ROE % distribution charts can be found below:

* The bar in red indicates where Key Tronic's ROE % falls into.



Key Tronic ROE % Calculation

Key Tronic's annualized ROE % for the fiscal year that ended in Jun. 2023 is calculated as

ROE %=Net Income (A: Jun. 2023 )/( (Total Stockholders Equity (A: Jun. 2022 )+Total Stockholders Equity (A: Jun. 2023 ))/ count )
=5.157/( (124.878+130.617)/ 2 )
=5.157/127.7475
=4.04 %

Key Tronic's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=4.336/( (131.068+132.435)/ 2 )
=4.336/131.7515
=3.29 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Key Tronic  (NAS:KTCC) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=4.336/131.7515
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4.336 / 581.668)*(581.668 / 385.5345)*(385.5345 / 131.7515)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.75 %*1.5087*2.9262
=ROA %*Equity Multiplier
=1.13 %*2.9262
=3.29 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=4.336/131.7515
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4.336 / 3.948) * (3.948 / 15.792) * (15.792 / 581.668) * (581.668 / 385.5345) * (385.5345 / 131.7515)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0983 * 0.25 * 2.71 % * 1.5087 * 2.9262
=3.29 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


Key Tronic ROE % Related Terms

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


Key Tronic (Key Tronic) Business Description

Traded in Other Exchanges
N/A
Address
4424 North Sullivan Road, Spokane Valley, WA, USA, 99216
Key Tronic Corp is an electronic manufacturing service provider. The company provides electronic manufacturing services to original equipment manufacturers in the United States and globally. Its primary services include integrated electronic and mechanical engineering, precision plastic molding, sheet metal fabrication, printed circuit board (PCB) and complete product assembly, component selection, sourcing and procurement, logistics, and new product testing and production. The firm derives a majority of its revenue from the United States.
Executives
Mark R Courtney officer: Vice President of Supply Chain 4424 N. SULLIVAN ROAD, SPOKANE VALLEY WA 99216
Subodh K Kulkarni director 5900 GOLDEN HILLS DRIVE, GOLDEN VALLEY MN 55416
Thomas E. Despres officer: VP of Southwest Operations 4424 N. SULLIVAN ROAD, SPOKANE VALLEY WA 99216
Chad Thomas Orebaugh officer: Vice President of Engineering 4424 N. SULLIVAN ROAD, SPOKANE VALLEY WA 99216
David H. Knaggs officer: Vice President of Quality 4424 N. SULLIVAN ROAD, SPOKANE VALLEY WA 99216
Frank Iii Crispigna officer: VP of Supply Chain P.O. BOX 14687, SPOKANE VALLEY WA 99214-0687
Duane D Mackleit officer: VP of Program Management P.O. BOX 14687, SPOKANE VALLEY WA 99214-0687
James R Bean director 2227 E. SKIPPERLING LN, BOISE ID 83706
Craig D Gates director, officer: President & CEO
Douglas G Burkhardt officer: EVP of Worldwide Operations P.O. BOX 14687, SPOKANE VALLEY WA 99214-0687
Ronald F Klawitter director, officer: See Remarks
Kathleen L Nemeth officer: Secretary and General Counsel KEY TRONIC CORP, PO BOX 14687, SPOKANE WA 99214-0687
Lawrence J Bostwick officer: VP of Quality & Reg Affairs P.O. BOX 14687, SPOKANE VALLEY WA 99214-0687
Brett R. Larsen officer: VP of Finance & Controller P.O. BOX 14687, SPOKANE VALLEY WA 99216
Philip Scott Hochberg officer: EVP of Business Development P.O. BOX 14687, SPOKANE VALLEY WA 99214-0687