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LXFR (Luxfer Holdings) ROE % : 23.55% (As of Sep. 2024)


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What is Luxfer Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Luxfer Holdings's annualized net income for the quarter that ended in Sep. 2024 was $50.8 Mil. Luxfer Holdings's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $215.7 Mil. Therefore, Luxfer Holdings's annualized ROE % for the quarter that ended in Sep. 2024 was 23.55%.

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

LXFR' s ROE % Range Over the Past 10 Years
Min: -0.9   Med: 11.57   Max: 15.91
Current: 4.29

During the past 13 years, Luxfer Holdings's highest ROE % was 15.91%. The lowest was -0.90%. And the median was 11.57%.

LXFR's ROE % is ranked worse than
59.34% of 2949 companies
in the Industrial Products industry
Industry Median: 6.26 vs LXFR: 4.29

Luxfer Holdings ROE % Historical Data

The historical data trend for Luxfer 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.

Luxfer Holdings ROE % Chart

Luxfer Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.73 11.71 15.90 12.92 -0.90

Luxfer Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 Premium Member Only Premium Member Only Premium Member Only -2.47 -11.10 5.11 -0.96 23.55

Competitive Comparison of Luxfer Holdings's ROE %

For the Specialty Industrial Machinery subindustry, Luxfer 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.


Luxfer Holdings's ROE % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Luxfer Holdings's ROE % distribution charts can be found below:

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



Luxfer Holdings ROE % Calculation

Luxfer Holdings'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 )
=-1.9/( (207.3+212.6)/ 2 )
=-1.9/209.95
=-0.90 %

Luxfer Holdings'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 )
=50.8/( (206.3+225.1)/ 2 )
=50.8/215.7
=23.55 %

* 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.


Luxfer Holdings  (NYSE:LXFR) 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
=50.8/215.7
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(50.8 / 397.6)*(397.6 / 392.3)*(392.3 / 215.7)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.78 %*1.0135*1.8187
=ROA %*Equity Multiplier
=12.95 %*1.8187
=23.55 %

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
=50.8/215.7
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (50.8 / 65.2) * (65.2 / 40) * (40 / 397.6) * (397.6 / 392.3) * (392.3 / 215.7)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7791 * 1.63 * 10.06 % * 1.0135 * 1.8187
=23.55 %

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.


Luxfer Holdings ROE % Related Terms

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


Luxfer Holdings Business Description

Traded in Other Exchanges
Address
8989 North Port Washington Road, Suite 211, Milwaukee, WI, USA, 53217
Luxfer Holdings PLC is a manufacturer industrial company innovating niche applications in materials engineering. It focuses on value creation by using its broad array of technical know-how and proprietary technologies to help create a safe, clean, and energy-efficient world. Luxfer's high-performance materials, components, and high-pressure gas containment devices are used in defense, first response and healthcare, transportation, and general industrial applications. It focuses on product lines related to magnesium alloys, zirconium chemicals, and carbon composites. Its segments are Elektron, Gas Cylinders, and Graphic Arts. It generates the majority of its revenue from Elektron and as well as Gas Cylinders.
Executives
Mark James Lawday officer: See Remarks LUXFER HOLDINGS PLC, LUMNS LANE, MANCHESTER X0 M27 8LN
Graham Wardlow officer: See Remarks LUXFER HOLDINGS PLC, LUMNS LANE, MANCHESTER X0 M27 8LN
Stephen Webster officer: Group Financial Controller LUXFER HOLDINGS PLC, LUMNS LANE, MANCHESTER X0 M27 8LN
Andrew Butcher officer: See Remarks LUXFER HOLDINGS PLC, LUMNS LANE, MANCHESTER X0 M27 8LN
Patrick K Mullen director LUXFER HOLDINGS PLC, LUMNS LANE, MANCHESTER X0 M27 8LN
Howard Ioan Mead officer: See Remarks LUXFER HOLDINGS PLC, LUMNS LANE, MANCHESTER X0 M27 8LN
Richard J Hipple director 10035 HUNTING DRIVE, BRECKSVILLE OH 44141
Sylvia Ann Stein director 1500 DEKOVEN AVE., RACINE WI 53403
Jeffrey C. Moorefield officer: See Remarks C/O LUXFER HOLDINGS PLC, LUMNS LANE, MANCHESTER X0 M27 8LN
Lisa G Trimberger director C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, SUITE 300, COLUMBIA MD 21046
Mark Chivers officer: See Remarks LUXFER HOLDINGS PLC, LUMNS LANE, MANCHESTER X0 M27 8LN
David Landless director 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112
James Gardella officer: President, Luxfer Magtech LUXFER HOLDINGS PLC, LUMNS LANE, MANCHESTER X0 M27 8LN
Megan Elizabeth Glise officer: Associate General Counsel LUMNS LANE, MANCHESTER X0 M27 8LN
Alok Maskara director, officer: Chief Executive Officer 2140 LAKE PARK BLVD, RICHARDSON TX 75080