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Morgan Stanley (Morgan Stanley) ROE % : 13.77% (As of Mar. 2024)


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What is Morgan Stanley ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Morgan Stanley's annualized net income for the quarter that ended in Mar. 2024 was $13,648 Mil. Morgan Stanley's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $99,118 Mil. Therefore, Morgan Stanley's annualized ROE % for the quarter that ended in Mar. 2024 was 13.77%.

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

MS' s ROE % Range Over the Past 10 Years
Min: 5.07   Med: 9.93   Max: 14.51
Current: 9.54

During the past 13 years, Morgan Stanley's highest ROE % was 14.51%. The lowest was 5.07%. And the median was 9.93%.

MS's ROE % is ranked better than
63.72% of 780 companies
in the Capital Markets industry
Industry Median: 5.27 vs MS: 9.54

Morgan Stanley ROE % Historical Data

The historical data trend for Morgan Stanley'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.

Morgan Stanley ROE % Chart

Morgan Stanley 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 11.18 12.00 14.51 10.73 9.12

Morgan Stanley Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 11.86 8.68 9.65 6.12 13.77

Competitive Comparison of Morgan Stanley's ROE %

For the Capital Markets subindustry, Morgan Stanley'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.


Morgan Stanley's ROE % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Morgan Stanley's ROE % distribution charts can be found below:

* The bar in red indicates where Morgan Stanley's ROE % falls into.



Morgan Stanley ROE % Calculation

Morgan Stanley'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 )
=9087/( (100141+99038)/ 2 )
=9087/99589.5
=9.12 %

Morgan Stanley's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=13648/( (99038+99198)/ 2 )
=13648/99118
=13.77 %

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


Morgan Stanley  (NYSE:MS) 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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=13648/99118
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(13648 / 56860)*(56860 / 1211098)*(1211098 / 99118)
=Net Margin %*Asset Turnover*Equity Multiplier
=24 %*0.0469*12.2187
=ROA %*Equity Multiplier
=1.13 %*12.2187
=13.77 %

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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=13648/99118
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (13648 / 17580) * (17580 / 56860) * (56860 / 1211098) * (1211098 / 99118)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7763 * 30.92 % * 0.0469 * 12.2187
=13.77 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


Morgan Stanley ROE % Related Terms

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


Morgan Stanley (Morgan Stanley) Business Description

Address
1585 Broadway, New York, NY, USA, 10036
Morgan Stanley is a global investment bank whose history, through its legacy firms, can be traced back to 1924. The company has institutional securities, wealth management, and investment management segments. The company had over $4 trillion of client assets as well as over 80,000 employees at the end of 2022. Approximately 50% of the company's net revenue is from its institutional securities business, with the remainder coming from wealth and investment management. The company derives about 30% of its total revenue outside the Americas.
Executives
Andrew M Saperstein officer: Head of Wealth Management 1585 BROADWAY, NEW YORK NY 10036
Raja Akram officer: Deputy Chief Financial Officer 1585 BROADWAY, NEW YORK NY 10036
Edward N Pick officer: Head of Inst'l Securities 1585 BROADWAY, NEW YORK NY 10036
James P Gorman other: Business Unit Head C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Daniel A Simkowitz officer: Head of Investment Management C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Smith Charles Aubrey Iii officer: Chief Risk Officer 1585 BROADWAY, NEW YORK NY 10036
Thomas H Glocer director 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Alistair Darling director C/O MORGAN STANLEY 1585 BROADWAY, NEW YORK X1 10036
Mandell Crawley officer: Chief Human Resources Officer 1585 BROADWAY, NEW YORK NY 10036
Eric F Grossman officer: Chief Legal Officer C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Masato Miyachi director C/O MORGAN STANLEY 1585 BROADWAY, NEW YORK NY 10036
Stephen J Luczo director
Keishi Hotsuki officer: Interim Chief Risk Officer C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Jonathan Pruzan officer: Chief Financial Officer C/O MORGAN STANLEY 1585 BROADWAY, NEW YORK NY 10036
Erika H James director C/O SVMK INC., ONE CURIOSITY WAY, SAN MATEO CA 94403