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Changhong Huayi Compressor Co (SZSE:000404) ROE % : 8.31% (As of Mar. 2024)


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What is Changhong Huayi Compressor Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Changhong Huayi Compressor Co's annualized net income for the quarter that ended in Mar. 2024 was ¥320 Mil. Changhong Huayi Compressor Co's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was ¥3,848 Mil. Therefore, Changhong Huayi Compressor Co's annualized ROE % for the quarter that ended in Mar. 2024 was 8.31%.

The historical rank and industry rank for Changhong Huayi Compressor Co's ROE % or its related term are showing as below:

SZSE:000404' s ROE % Range Over the Past 10 Years
Min: 0.96   Med: 6.49   Max: 10.77
Current: 10.12

During the past 13 years, Changhong Huayi Compressor Co's highest ROE % was 10.77%. The lowest was 0.96%. And the median was 6.49%.

SZSE:000404's ROE % is ranked better than
65.83% of 2941 companies
in the Industrial Products industry
Industry Median: 6.73 vs SZSE:000404: 10.12

Changhong Huayi Compressor Co ROE % Historical Data

The historical data trend for Changhong Huayi Compressor Co'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.

Changhong Huayi Compressor Co ROE % Chart

Changhong Huayi Compressor Co 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 0.96 3.55 5.49 7.48 9.76

Changhong Huayi Compressor Co 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 6.94 11.17 11.97 9.21 8.31

Competitive Comparison of Changhong Huayi Compressor Co's ROE %

For the Specialty Industrial Machinery subindustry, Changhong Huayi Compressor Co'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.


Changhong Huayi Compressor Co's ROE % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Changhong Huayi Compressor Co's ROE % distribution charts can be found below:

* The bar in red indicates where Changhong Huayi Compressor Co's ROE % falls into.



Changhong Huayi Compressor Co ROE % Calculation

Changhong Huayi Compressor Co'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 )
=362.159/( (3593.814+3823.955)/ 2 )
=362.159/3708.8845
=9.76 %

Changhong Huayi Compressor Co'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 )
=319.688/( (3823.955+3872.182)/ 2 )
=319.688/3848.0685
=8.31 %

* 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.


Changhong Huayi Compressor Co  (SZSE:000404) 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
=319.688/3848.0685
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(319.688 / 13362.1)*(13362.1 / 14331.4835)*(14331.4835 / 3848.0685)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.39 %*0.9324*3.7243
=ROA %*Equity Multiplier
=2.23 %*3.7243
=8.31 %

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
=319.688/3848.0685
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (319.688 / 547.2) * (547.2 / 482.336) * (482.336 / 13362.1) * (13362.1 / 14331.4835) * (14331.4835 / 3848.0685)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5842 * 1.1345 * 3.61 % * 0.9324 * 3.7243
=8.31 %

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.


Changhong Huayi Compressor Co ROE % Related Terms

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Changhong Huayi Compressor Co (SZSE:000404) Business Description

Traded in Other Exchanges
N/A
Address
No. 1, Changhong Avenue, Gaoxin Development Zone, Jingdezhen, Jiangxi, CHN, 333001
Changhong Huayi Compressor Co Ltd is a China-based company that develops and produces various types of compressors such as refrigerators, freezers, water dispensers, ice machines, and dehumidifiers. The company has established partnerships for the purpose of sales with domestic and foreign refrigerator companies such as Haier, Hisense, Midea, Meiling and Germany Bosch-Siemens, Sweden Electrolux, Italy Yixixi, Spain Fagor, Liebherr, Samsung, Toshiba.
Executives
Yang Fan Executives
Shi Qiang Secretary, Director
Yu Wan Chun Executives
Chen Si Yuan Supervisors
Zhang Qin Jian Directors, executives
Yang Xiu Biao Director
Xiao Wen Yi Directors, executives
He Cheng Zhi Executives
Pang Hai Tao Executives
Fu Nian Ping Director
Wu Wei Yu Directors, executives
Cha Chun Xia Supervisors
Wang Guo Qing Executives
Wu Jing Hua Executives
Zhu Jin Song Directors, executives

Changhong Huayi Compressor Co (SZSE:000404) Headlines

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