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Frasers Group (LSE:FRAS) ROE % : 28.27% (As of Oct. 2023)


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What is Frasers Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Frasers Group's annualized net income for the quarter that ended in Oct. 2023 was £468 Mil. Frasers Group's average Total Stockholders Equity over the quarter that ended in Oct. 2023 was £1,657 Mil. Therefore, Frasers Group's annualized ROE % for the quarter that ended in Oct. 2023 was 28.27%.

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

LSE:FRAS' s ROE % Range Over the Past 10 Years
Min: -6.75   Med: 18.83   Max: 34.34
Current: 34.34

During the past 13 years, Frasers Group's highest ROE % was 34.34%. The lowest was -6.75%. And the median was 18.83%.

LSE:FRAS's ROE % is ranked better than
91.74% of 1089 companies
in the Retail - Cyclical industry
Industry Median: 5.65 vs LSE:FRAS: 34.34

Frasers Group ROE % Historical Data

The historical data trend for Frasers Group'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.

Frasers Group ROE % Chart

Frasers Group Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.18 7.46 -6.75 20.15 33.60

Frasers Group Semi-Annual Data
Apr14 Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23
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 21.78 16.96 28.67 40.39 28.27

Competitive Comparison of Frasers Group's ROE %

For the Specialty Retail subindustry, Frasers Group'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.


Frasers Group's ROE % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Frasers Group's ROE % distribution charts can be found below:

* The bar in red indicates where Frasers Group's ROE % falls into.



Frasers Group ROE % Calculation

Frasers Group's annualized ROE % for the fiscal year that ended in Apr. 2023 is calculated as

ROE %=Net Income (A: Apr. 2023 )/( (Total Stockholders Equity (A: Apr. 2022 )+Total Stockholders Equity (A: Apr. 2023 ))/ count )
=488/( (1286.6+1618.2)/ 2 )
=488/1452.4
=33.60 %

Frasers Group's annualized ROE % for the quarter that ended in Oct. 2023 is calculated as

ROE %=Net Income (Q: Oct. 2023 )/( (Total Stockholders Equity (Q: Apr. 2023 )+Total Stockholders Equity (Q: Oct. 2023 ))/ count )
=468.4/( (1618.2+1695.8)/ 2 )
=468.4/1657
=28.27 %

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


Frasers Group  (LSE:FRAS) 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: Oct. 2023 )
=Net Income/Total Stockholders Equity
=468.4/1657
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(468.4 / 5539.2)*(5539.2 / 4466.85)*(4466.85 / 1657)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.46 %*1.2401*2.6957
=ROA %*Equity Multiplier
=10.49 %*2.6957
=28.27 %

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: Oct. 2023 )
=Net Income/Total Stockholders Equity
=468.4/1657
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (468.4 / 620.4) * (620.4 / 584.4) * (584.4 / 5539.2) * (5539.2 / 4466.85) * (4466.85 / 1657)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.755 * 1.0616 * 10.55 % * 1.2401 * 2.6957
=28.27 %

Note: The net income data used here is two times the semi-annual (Oct. 2023) net income data. The Revenue data used here is two times the semi-annual (Oct. 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.


Frasers Group ROE % Related Terms

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


Frasers Group (LSE:FRAS) Business Description

Traded in Other Exchanges
Address
Unit A, Brook Park East, Shirebrook, GBR, NG20 8RY
Frasers Group PLC is a U.K. sports goods retailer. The company operates stores in the United Kingdom and continental Europe, including premium lifestyle stores in the U.K. The diversified portfolio, consists of globally recognized brands, such as Dunlop, Lonsdale, Nike, Adidas, Under Armour, Puma, Karrimor, Kangol, Slazenger, Everlast, No Fear, and Firetrap, among others. Sports Direct International sells through stand-alone stores and multi-fascia retail spaces, department stores, and online. The premium lifestyle portfolio operates under the Flannels, Cruise, USC, and Van Mildert fascias.

Frasers Group (LSE:FRAS) Headlines

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