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NYSE Euronext, (XPAR:NYX) ROE % : 11.11% (As of Sep. 2013)


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What is NYSE Euronext, ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NYSE Euronext,'s annualized net income for the quarter that ended in Sep. 2013 was €533 Mil. NYSE Euronext,'s average Total Stockholders Equity over the quarter that ended in Sep. 2013 was €4,792 Mil. Therefore, NYSE Euronext,'s annualized ROE % for the quarter that ended in Sep. 2013 was 11.11%.

The historical rank and industry rank for NYSE Euronext,'s ROE % or its related term are showing as below:

XPAR:NYX's ROE % is not ranked *
in the Capital Markets industry.
Industry Median: 5.33
* Ranked among companies with meaningful ROE % only.

NYSE Euronext, ROE % Historical Data

The historical data trend for NYSE Euronext,'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.

NYSE Euronext, ROE % Chart

NYSE Euronext, Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -9.67 3.14 8.86 9.28 5.39

NYSE Euronext, Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
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 6.70 1.74 8.26 11.38 11.11

Competitive Comparison of NYSE Euronext,'s ROE %

For the Financial Data & Stock Exchanges subindustry, NYSE Euronext,'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.


NYSE Euronext,'s ROE % Distribution in the Capital Markets Industry

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

* The bar in red indicates where NYSE Euronext,'s ROE % falls into.



NYSE Euronext, ROE % Calculation

NYSE Euronext,'s annualized ROE % for the fiscal year that ended in Dec. 2012 is calculated as

ROE %=Net Income (A: Dec. 2012 )/( (Total Stockholders Equity (A: Dec. 2011 )+Total Stockholders Equity (A: Dec. 2012 ))/ count )
=265.176/( (5001.56+4834.89)/ 2 )
=265.176/4918.225
=5.39 %

NYSE Euronext,'s annualized ROE % for the quarter that ended in Sep. 2013 is calculated as

ROE %=Net Income (Q: Sep. 2013 )/( (Total Stockholders Equity (Q: Jun. 2013 )+Total Stockholders Equity (Q: Sep. 2013 ))/ count )
=532.576/( (4638.202+4945.028)/ 2 )
=532.576/4791.615
=11.11 %

* 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. 2013) net income data. ROE % is displayed in the 30-year financial page.


NYSE Euronext,  (XPAR:NYX) 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. 2013 )
=Net Income/Total Stockholders Equity
=532.576/4791.615
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(532.576 / 2662.88)*(2662.88 / 9202.286)*(9202.286 / 4791.615)
=Net Margin %*Asset Turnover*Equity Multiplier
=20 %*0.2894*1.9205
=ROA %*Equity Multiplier
=5.79 %*1.9205
=11.11 %

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. 2013 )
=Net Income/Total Stockholders Equity
=532.576/4791.615
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (532.576 / 472.736) * (472.736 / 532.576) * (532.576 / 2662.88) * (2662.88 / 9202.286) * (9202.286 / 4791.615)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.1266 * 0.8876 * 20 % * 0.2894 * 1.9205
=11.11 %

Note: The net income data used here is four times the quarterly (Sep. 2013) net income data. The Revenue data used here is four times the quarterly (Sep. 2013) 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.


NYSE Euronext, ROE % Related Terms

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NYSE Euronext, (XPAR:NYX) Business Description

Traded in Other Exchanges
N/A
Address
NYSE Euronext, Inc., a Delaware corporation, was organized on May 22, 2006 in anticipation of the combination of the businesses of NYSE Group, Inc., a Delaware corporation, and Euronext N.V., a company organized under the laws of the Netherlands. The Company is a global operator of financial markets and provider of trading solutions. The Company offers an array of products and services in cash equities, futures, options, swaps, exchange-traded products, bonds, clearing operations, market data, commercial technology solutions and carbon trading, all designed to meet the evolving needs of investors, issuers, financial institutions and market participants. The Company consists of three business segments: Derivatives; Cash Trading and Listings; and Information Services and Technology Solutions. Derivatives segment is comprised of derivatives trading and clearing businesses and includes its subsidiaries NYSE Liffe, NYSE Liffe Clearing, NYSE Liffe US, NYSE Amex Options, NYSE Arca Options and joint venture NYPC as well as its related derivatives market data business. Cash Trading and Listings segment consists of cash trading and listings businesses and includes its subsidiaries the NYSE, Euronext, NYSE Amex, NYSE Arca, NYSE Alternext, NYSE Arca Europe and SmartPool, as well as NYSE Blue and Interbolsa, and its related cash trading market data business. Information Services and Technology Solutions segment refers to its commercial technology transactions, data and infrastructure businesses. The Company operates a commercial technology business, NYSE Technologies Inc., and also owns NYFIX, Inc., a provider of solutions that aims to optimize trading efficiency. NYSE Technologies provides comprehensive transaction, data and infrastructure services and managed solutions for buy-side, sell-side and exchange communities. NYSE Technologies' integrated solutions power the trading operations of global financial institutions and exchanges, including non-NYSE Euronext markets in addition to all the exchanges in the NYSE Euronext group. NYSE Technologies operates five businesses: Global Market Data, which offers an array of global market information products covering multiple asset classes; Trading Solutions, which creates and implements high performance, end-to-end messaging software and real-time market data distribution and integration products; Exchange Solutions, which provides multi-asset exchange platform services, managed services and expert consultancy; Global Connectivity, which offers a financial transaction network connecting firms and exchanges worldwide; and Transaction Services, which mainly comprises the former NYFIX FIX business, and which incorporates the NYFIX Marketplace and FIX Software businesses. NYSE Liffe US, NYSE Arca and NYSE Amex face considerable competition in derivatives trading. Their main U.S. competitors are the CME Group Inc., Chicago Board Options Exchange, Inc., the International Securities Exchange Holdings, Inc

NYSE Euronext, (XPAR:NYX) Headlines

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