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REVG (REV Group) ROE % : 18.60% (As of Jul. 2024)


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What is REV Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. REV Group's annualized net income for the quarter that ended in Jul. 2024 was $72 Mil. REV Group's average Total Stockholders Equity over the quarter that ended in Jul. 2024 was $387 Mil. Therefore, REV Group's annualized ROE % for the quarter that ended in Jul. 2024 was 18.60%.

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

REVG' s ROE % Range Over the Past 10 Years
Min: -6.24   Med: 5.33   Max: 54.89
Current: 54.89

During the past 11 years, REV Group's highest ROE % was 54.89%. The lowest was -6.24%. And the median was 5.33%.

REVG's ROE % is ranked better than
95.61% of 205 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.65 vs REVG: 54.89

REV Group ROE % Historical Data

The historical data trend for REV 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.

REV Group ROE % Chart

REV Group Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.37 -6.24 8.96 3.12 9.49

REV Group Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
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 12.93 24.58 147.03 13.88 18.60

Competitive Comparison of REV Group's ROE %

For the Farm & Heavy Construction Machinery subindustry, REV 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.


REV Group's ROE % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, REV Group's ROE % distribution charts can be found below:

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



REV Group ROE % Calculation

REV Group's annualized ROE % for the fiscal year that ended in Oct. 2023 is calculated as

ROE %=Net Income (A: Oct. 2023 )/( (Total Stockholders Equity (A: Oct. 2022 )+Total Stockholders Equity (A: Oct. 2023 ))/ count )
=45.3/( (456.3+498)/ 2 )
=45.3/477.15
=9.49 %

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

ROE %=Net Income (Q: Jul. 2024 )/( (Total Stockholders Equity (Q: Apr. 2024 )+Total Stockholders Equity (Q: Jul. 2024 ))/ count )
=72/( (379.7+394.6)/ 2 )
=72/387.15
=18.60 %

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


REV Group  (NYSE:REVG) 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: Jul. 2024 )
=Net Income/Total Stockholders Equity
=72/387.15
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(72 / 2317.6)*(2317.6 / 1332.55)*(1332.55 / 387.15)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.11 %*1.7392*3.4419
=ROA %*Equity Multiplier
=5.41 %*3.4419
=18.60 %

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: Jul. 2024 )
=Net Income/Total Stockholders Equity
=72/387.15
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (72 / 89.6) * (89.6 / 140.8) * (140.8 / 2317.6) * (2317.6 / 1332.55) * (1332.55 / 387.15)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8036 * 0.6364 * 6.08 % * 1.7392 * 3.4419
=18.60 %

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


REV Group ROE % Related Terms

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


REV Group Business Description

Traded in Other Exchanges
Address
245 South Executive Drive, Suite 100, Brookfield, WI, USA, 53005
REV Group Inc is a United States-based designer, manufacturer, and distributor of specialty vehicles and related aftermarket parts and services. It provides customized vehicle solutions for applications including essential needs, industrial and commercial, and consumer leisure. The operating segments of the company are Fire & Emergency, Commercial, and Recreation. The products of the company are sold to municipalities, government agencies, private contractors, consumers, and industrial and commercial end-users. It derives a majority of the revenue from the Fire and Emergency segment which includes manufacturing of fire apparatus and ambulance products. The company operates in the United States, Canada, and the rest of the world.
Executives
Charles Dutil director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
American Industrial Partners Capital Fund Iv (parallel), L.p. 10 percent owner 330 MADISON AVENUE, 28TH FLOOR, NEW YORK NY 10017
Stephen Zamansky officer: SVP, Gen Counsel & Sec
Maureen Oconnell director
Joseph Ladue officer: Chief Accounting Officer 245 SOUTH EXECUTIVE DR, SUITE 100, BROOKFIELD WI 53005
Paul J Bamatter director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Joel M. Rotroff director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Dino M Cusumano director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Justin Fish director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Christopher M Daniels officer: Chief Human Resources Officer 111 E. KILBOURN AVE., SUITE 2600, MILWAUKEE WI 53202
Skonieczny Jr. Mark A officer: Chief Financial Officer 833 E MICHIGAN STREET, SUITE 1100, MILWAUKEE WI 53202
Rodney M Rushing director, officer: CEO and President 5757 N GREEN BAY AVE, MILWAUKEE WI 53209
Stephen W. Boettinger officer: General Counsel C/O REV GROUP, INC., 111 E KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Randall Swift director 450 LEXINGTON AVE, 40TH FLOOR, NEW YORK NY 10017
Dean J Nolden officer: Chief Financial Officer C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202