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SWK (Stanley Black & Decker) ROE % : 4.15% (As of Sep. 2024)


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What is Stanley Black & Decker ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Stanley Black & Decker's annualized net income for the quarter that ended in Sep. 2024 was $364 Mil. Stanley Black & Decker's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $8,791 Mil. Therefore, Stanley Black & Decker's annualized ROE % for the quarter that ended in Sep. 2024 was 4.15%.

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

SWK' s ROE % Range Over the Past 10 Years
Min: -3.31   Med: 11.86   Max: 16.73
Current: -2.29

During the past 13 years, Stanley Black & Decker's highest ROE % was 16.73%. The lowest was -3.31%. And the median was 11.86%.

SWK's ROE % is ranked worse than
79.18% of 2949 companies
in the Industrial Products industry
Industry Median: 6.26 vs SWK: -2.29

Stanley Black & Decker ROE % Historical Data

The historical data trend for Stanley Black & Decker'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.

Stanley Black & Decker ROE % Chart

Stanley Black & Decker 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 11.26 12.22 14.92 9.98 -3.31

Stanley Black & Decker 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 0.20 -13.25 0.87 -0.51 4.15

Competitive Comparison of Stanley Black & Decker's ROE %

For the Tools & Accessories subindustry, Stanley Black & Decker'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.


Stanley Black & Decker's ROE % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Stanley Black & Decker's ROE % distribution charts can be found below:

* The bar in red indicates where Stanley Black & Decker's ROE % falls into.



Stanley Black & Decker ROE % Calculation

Stanley Black & Decker'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 )
=-310.5/( (9712.1+9056.1)/ 2 )
=-310.5/9384.1
=-3.31 %

Stanley Black & Decker'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 )
=364.4/( (8721.9+8859.2)/ 2 )
=364.4/8790.55
=4.15 %

* 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.


Stanley Black & Decker  (NYSE:SWK) 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
=364.4/8790.55
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(364.4 / 15005.2)*(15005.2 / 22468)*(22468 / 8790.55)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.43 %*0.6678*2.5559
=ROA %*Equity Multiplier
=1.62 %*2.5559
=4.15 %

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
=364.4/8790.55
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (364.4 / 358) * (358 / 1294) * (1294 / 15005.2) * (15005.2 / 22468) * (22468 / 8790.55)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0179 * 0.2767 * 8.62 % * 0.6678 * 2.5559
=4.15 %

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.


Stanley Black & Decker ROE % Related Terms

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


Stanley Black & Decker Business Description

Address
1000 Stanley Drive, New Britain, CT, USA, 06053
Stanley Black & Decker Inc is a manufacturer of hand and power tools. The company operates in two reportable segments namely Tools and Outdoor and Industrial. It generates maximum revenue from the Tools and Outdoor segment. The Tools and Outdoor segment is comprised of the Power Tools Group (PTG), Hand Tools, Accessories and Storage (HTAS), and Outdoor Power Equipment (Outdoor) businesses. Geographically, the company generates revenue from the United States, Canada, Other Americas, Europe, and Asia. It derives a majority of its revenue from the United States.
Executives
Janet Link officer: SVP, General Counsel & Sec'y 6501 LEGACY DRIVE, PLANO TX 75024
Graham Robinson officer: SVP & President of Industrial 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Susan K Carter director C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Christopher John Nelson officer: Chief Operating Officer 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
Tamer Abuaita officer: SVP, Global Supply Chain C/O SOVOS BRANDS, INC., 168 CENTENNIAL PARKWAY, SUITE 200, LOUISVILLE CO 80027
Patrick D Hallinan officer: EVP, Chief Financial Officer FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
John Lucas officer: SVP, Chief HR Officer 200 INNOVATION WAY, AKRON OH 44316
Walburger Corbin officer: Interim CFO 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Scot Greulach officer: Chief Accounting Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Robert J Manning director 1201 THIRD AVE, STE 4900, SEATTLE WA 98101
Andrea J. Ayers director STANLEY BLACK & DECKER, IN., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Jocelyn Belisle officer: VP, Chief Accounting Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Stephen Subasic officer: SVP, Chief HR Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Adrian V Mitchell director C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001
Jaime A Ramirez officer: Pres.Construct.&DIY, Latin Am. 1000 STANLEY DRIVE, NEW BRITAIN CT 06053