GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Unilever Nepal Ltd (XNEP:UNL) » Definitions » ROE %

Unilever Nepal (XNEP:UNL) ROE % : 45.78% (As of Jul. 2023)


View and export this data going back to . Start your Free Trial

What is Unilever Nepal ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Unilever Nepal's annualized net income for the quarter that ended in Jul. 2023 was NPR1,834 Mil. Unilever Nepal's average Total Stockholders Equity over the quarter that ended in Jul. 2023 was NPR4,007 Mil. Therefore, Unilever Nepal's annualized ROE % for the quarter that ended in Jul. 2023 was 45.78%.

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

XNEP:UNL' s ROE % Range Over the Past 10 Years
Min: 16.66   Med: 48.06   Max: 54.74
Current: 45.78

During the past 8 years, Unilever Nepal's highest ROE % was 54.74%. The lowest was 16.66%. And the median was 48.06%.

XNEP:UNL's ROE % is ranked better than
95.54% of 1860 companies
in the Consumer Packaged Goods industry
Industry Median: 6.98 vs XNEP:UNL: 45.78

Unilever Nepal ROE % Historical Data

The historical data trend for Unilever Nepal'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.

Unilever Nepal ROE % Chart

Unilever Nepal Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
ROE %
Get a 7-Day Free Trial 50.40 16.66 37.61 49.29 45.78

Unilever Nepal Semi-Annual Data
Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
ROE % Get a 7-Day Free Trial 50.40 16.66 37.61 49.29 45.78

Competitive Comparison of Unilever Nepal's ROE %

For the Household & Personal Products subindustry, Unilever Nepal'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.


Unilever Nepal's ROE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Unilever Nepal's ROE % distribution charts can be found below:

* The bar in red indicates where Unilever Nepal's ROE % falls into.



Unilever Nepal ROE % Calculation

Unilever Nepal's annualized ROE % for the fiscal year that ended in Jul. 2023 is calculated as

ROE %=Net Income (A: Jul. 2023 )/( (Total Stockholders Equity (A: Jul. 2022 )+Total Stockholders Equity (A: Jul. 2023 ))/ count )
=1834.321/( (3652.141+4360.902)/ 2 )
=1834.321/4006.5215
=45.78 %

Unilever Nepal's annualized ROE % for the quarter that ended in Jul. 2023 is calculated as

ROE %=Net Income (Q: Jul. 2023 )/( (Total Stockholders Equity (Q: Jul. 2022 )+Total Stockholders Equity (Q: Jul. 2023 ))/ count )
=1834.321/( (3652.141+4360.902)/ 2 )
=1834.321/4006.5215
=45.78 %

* 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 one times the annual (Jul. 2023) net income data. ROE % is displayed in the 30-year financial page.


Unilever Nepal  (XNEP:UNL) 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. 2023 )
=Net Income/Total Stockholders Equity
=1834.321/4006.5215
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1834.321 / 8480.357)*(8480.357 / 6149.8955)*(6149.8955 / 4006.5215)
=Net Margin %*Asset Turnover*Equity Multiplier
=21.63 %*1.3789*1.535
=ROA %*Equity Multiplier
=29.83 %*1.535
=45.78 %

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. 2023 )
=Net Income/Total Stockholders Equity
=1834.321/4006.5215
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1834.321 / 2239.241) * (2239.241 / 2093.636) * (2093.636 / 8480.357) * (8480.357 / 6149.8955) * (6149.8955 / 4006.5215)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8192 * 1.0695 * 24.69 % * 1.3789 * 1.535
=45.78 %

Note: The net income data used here is one times the annual (Jul. 2023) net income data. The Revenue data used here is one times the annual (Jul. 2023) 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.


Unilever Nepal ROE % Related Terms

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


Unilever Nepal Business Description

Traded in Other Exchanges
N/A
Address
City Square Building, 2nd and 3rd Floor, New Baneswor-10, Kathmandu, NPL, 44600
Unilever Nepal Ltd is engaged in manufacturing and selling personal products for the domestic market and exports to India. The company operates in a single segment namely Fast-moving consumer goods (FMCG) which mainly consist of products like detergents, scourers, laundry soaps, toilet soaps, Personal and Beauty Care Products and Food Products.

Unilever Nepal Headlines