GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Siemens Healthineers AG (XTER:SHL) » Definitions » ROE %

Siemens Healthineers AG (XTER:SHL) ROE % : 13.53% (As of Sep. 2024)


View and export this data going back to 2018. Start your Free Trial

What is Siemens Healthineers AG ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Siemens Healthineers AG's annualized net income for the quarter that ended in Sep. 2024 was €2,464 Mil. Siemens Healthineers AG's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was €18,218 Mil. Therefore, Siemens Healthineers AG's annualized ROE % for the quarter that ended in Sep. 2024 was 13.53%.

The historical rank and industry rank for Siemens Healthineers AG's ROE % or its related term are showing as below:

XTER:SHL' s ROE % Range Over the Past 10 Years
Min: 7.96   Med: 14.84   Max: 47.94
Current: 10.67

During the past 10 years, Siemens Healthineers AG's highest ROE % was 47.94%. The lowest was 7.96%. And the median was 14.84%.

XTER:SHL's ROE % is ranked better than
78.8% of 802 companies
in the Medical Devices & Instruments industry
Industry Median: -0.145 vs XTER:SHL: 10.67

Siemens Healthineers AG ROE % Historical Data

The historical data trend for Siemens Healthineers AG'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.

Siemens Healthineers AG ROE % Chart

Siemens Healthineers AG Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.67 11.99 11.27 7.96 10.71

Siemens Healthineers AG 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 12.18 9.60 9.35 10.18 13.53

Competitive Comparison of Siemens Healthineers AG's ROE %

For the Medical Devices subindustry, Siemens Healthineers AG'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.


Siemens Healthineers AG's ROE % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Siemens Healthineers AG's ROE % distribution charts can be found below:

* The bar in red indicates where Siemens Healthineers AG's ROE % falls into.



Siemens Healthineers AG ROE % Calculation

Siemens Healthineers AG's annualized ROE % for the fiscal year that ended in Sep. 2024 is calculated as

ROE %=Net Income (A: Sep. 2024 )/( (Total Stockholders Equity (A: Sep. 2023 )+Total Stockholders Equity (A: Sep. 2024 ))/ count )
=1942/( (18081+18199)/ 2 )
=1942/18140
=10.71 %

Siemens Healthineers AG'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 )
=2464/( (18236+18199)/ 2 )
=2464/18217.5
=13.53 %

* 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.


Siemens Healthineers AG  (XTER:SHL) 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
=2464/18217.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2464 / 25316)*(25316 / 46340.5)*(46340.5 / 18217.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.73 %*0.5463*2.5437
=ROA %*Equity Multiplier
=5.32 %*2.5437
=13.53 %

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
=2464/18217.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2464 / 3376) * (3376 / 3784) * (3784 / 25316) * (25316 / 46340.5) * (46340.5 / 18217.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7299 * 0.8922 * 14.95 % * 0.5463 * 2.5437
=13.53 %

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.


Siemens Healthineers AG ROE % Related Terms

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


Siemens Healthineers AG Business Description

Address
Siemensstr. 3, Forchheim, BY, DEU, 91301
Siemens Healthineers is engaged in therapeutic imaging, radiotherapy, laboratory, and point-of-care diagnostics. The imaging segment (55% of sales in fiscal 2023) includes magnetic resonance imaging, computed tomography, X-ray systems, molecular imaging, and ultrasound. The Varian segment (16% of sales) offers radiotherapy and other oncology solutions. The portfolio of the diagnostics segment (21%) includes in vitro diagnostics products offered to providers and point-of-care diagnostics. The advanced therapies segment (9%) products are designed to support image-guided minimally invasive treatments in cardiology, interventional radiology, and surgery. North America represents 41% of total sales, Europe, Middle East, and Africa 32%, and Asia-Pacific including China the remainder.
Executives
Dr. Nathalie Von Siemens Supervisory Board
Darleen Caron Board of Directors
Dr. Jochen Schmitz Board of Directors
Prof. Dr. Ralf Peter Thomas Supervisory Board
Dr. Christoph Zindel Board of Directors
Dr. Andreas Christian Hoffmann Supervisory Board
Peer M. Schatz Supervisory Board
Dr. Bernhard Montag Board of Directors

Siemens Healthineers AG Headlines

No Headlines