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LZAGY (Lonza Group) ROE % : 6.88% (As of Jun. 2024)


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What is Lonza Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Lonza Group's annualized net income for the quarter that ended in Jun. 2024 was $736 Mil. Lonza Group's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $10,696 Mil. Therefore, Lonza Group's annualized ROE % for the quarter that ended in Jun. 2024 was 6.88%.

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

LZAGY' s ROE % Range Over the Past 10 Years
Min: 5.91   Med: 12.47   Max: 35.54
Current: 5.91

During the past 13 years, Lonza Group's highest ROE % was 35.54%. The lowest was 5.91%. And the median was 12.47%.

LZAGY's ROE % is ranked better than
70.62% of 211 companies
in the Medical Diagnostics & Research industry
Industry Median: -5.88 vs LZAGY: 5.91

Lonza Group ROE % Historical Data

The historical data trend for Lonza 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.

Lonza Group ROE % Chart

Lonza Group 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 10.19 13.70 35.02 11.88 6.78

Lonza Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 9.70 14.31 7.98 5.04 6.88

Competitive Comparison of Lonza Group's ROE %

For the Diagnostics & Research subindustry, Lonza 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.


Lonza Group's ROE % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Lonza Group's ROE % distribution charts can be found below:

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



Lonza Group ROE % Calculation

Lonza Group'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 )
=756.244/( (11375.054+10929.695)/ 2 )
=756.244/11152.3745
=6.78 %

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

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=736.182/( (10929.695+10462.072)/ 2 )
=736.182/10695.8835
=6.88 %

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


Lonza Group  (OTCPK:LZAGY) 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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=736.182/10695.8835
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(736.182 / 6840.456)*(6840.456 / 19745.456)*(19745.456 / 10695.8835)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.76 %*0.3464*1.8461
=ROA %*Equity Multiplier
=3.73 %*1.8461
=6.88 %

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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=736.182/10695.8835
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (736.182 / 883.866) * (883.866 / 1342.582) * (1342.582 / 6840.456) * (6840.456 / 19745.456) * (19745.456 / 10695.8835)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8329 * 0.6583 * 19.63 % * 0.3464 * 1.8461
=6.88 %

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


Lonza Group ROE % Related Terms

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


Lonza Group Business Description

Address
Muenchensteinerstrasse 38, Basel, CHE, CH-4002
Lonza Group is a contract development and manufacturing organization, or CDMO. It operates under four segments: small molecules, biologics, cell & gene, and capsules & health ingredients. Lonza derives its revenue primarily from long-term supply agreements with pharmaceutical customers. The company provides a range of development and manufacturing services throughout the entire lifecycle of a product from drug research to commercial supply. The majority of Lonza's customers are pharmaceutical and biotechnology companies, academic institutions, and government research organizations.