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Crown Paints Kenya (NAI:CRWN) ROE % : 23.15% (As of Dec. 2022)


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What is Crown Paints Kenya ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Crown Paints Kenya's annualized net income for the quarter that ended in Dec. 2022 was KES824 Mil. Crown Paints Kenya's average Total Stockholders Equity over the quarter that ended in Dec. 2022 was KES3,560 Mil. Therefore, Crown Paints Kenya's annualized ROE % for the quarter that ended in Dec. 2022 was 23.15%.

The historical rank and industry rank for Crown Paints Kenya's ROE % or its related term are showing as below:

NAI:CRWN' s ROE % Range Over the Past 10 Years
Min: 1.46   Med: 15.15   Max: 37.27
Current: 23.15

During the past 13 years, Crown Paints Kenya's highest ROE % was 37.27%. The lowest was 1.46%. And the median was 15.15%.

NAI:CRWN's ROE % is ranked better than
94.13% of 1533 companies
in the Chemicals industry
Industry Median: 5.21 vs NAI:CRWN: 23.15

Crown Paints Kenya ROE % Historical Data

The historical data trend for Crown Paints Kenya'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.

Crown Paints Kenya ROE % Chart

Crown Paints Kenya Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.20 27.68 37.27 27.39 23.15

Crown Paints Kenya Semi-Annual Data
Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
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 13.20 27.68 37.27 27.39 23.15

Competitive Comparison of Crown Paints Kenya's ROE %

For the Specialty Chemicals subindustry, Crown Paints Kenya'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.


Crown Paints Kenya's ROE % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Crown Paints Kenya's ROE % distribution charts can be found below:

* The bar in red indicates where Crown Paints Kenya's ROE % falls into.



Crown Paints Kenya ROE % Calculation

Crown Paints Kenya's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=824.015/( (3430.189+3689.347)/ 2 )
=824.015/3559.768
=23.15 %

Crown Paints Kenya's annualized ROE % for the quarter that ended in Dec. 2022 is calculated as

ROE %=Net Income (Q: Dec. 2022 )/( (Total Stockholders Equity (Q: Dec. 2021 )+Total Stockholders Equity (Q: Dec. 2022 ))/ count )
=824.015/( (3430.189+3689.347)/ 2 )
=824.015/3559.768
=23.15 %

* 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 (Dec. 2022) net income data. ROE % is displayed in the 30-year financial page.


Crown Paints Kenya  (NAI:CRWN) 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: Dec. 2022 )
=Net Income/Total Stockholders Equity
=824.015/3559.768
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(824.015 / 11388.808)*(11388.808 / 8506.091)*(8506.091 / 3559.768)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.24 %*1.3389*2.3895
=ROA %*Equity Multiplier
=9.69 %*2.3895
=23.15 %

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: Dec. 2022 )
=Net Income/Total Stockholders Equity
=824.015/3559.768
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (824.015 / 1072.87) * (1072.87 / 1218.029) * (1218.029 / 11388.808) * (11388.808 / 8506.091) * (8506.091 / 3559.768)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.768 * 0.8808 * 10.69 % * 1.3389 * 2.3895
=23.15 %

Note: The net income data used here is one times the annual (Dec. 2022) net income data. The Revenue data used here is one times the annual (Dec. 2022) 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.


Crown Paints Kenya ROE % Related Terms

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


Crown Paints Kenya (NAI:CRWN) Business Description

Traded in Other Exchanges
N/A
Address
Likoni Road, Industrial Area, P.O. Box 78848, Nairobi, KEN, 00507
Crown Paints Kenya Ltd is a Kenya-based paint manufacturer. The company comprises two business segments - Paints and Adhesives. The Paints segment manufactures and sells paints, decorating sundries, polyvinyl acetate emulsion, and alkyd resins producer. The Adhesives segment manufactures and sells adhesives. It offers decorative paints, automotive paints, industrial paints, road marking paints, and thinners. The company generates majority of its revenue from Paints segment. The company does its sales via geographical segments that include Kenya, Uganda, Tanzania, Rwanda, and others.

Crown Paints Kenya (NAI:CRWN) Headlines

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