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ARKO (ARKO) ROE % : 1.13% (As of Dec. 2023)


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What is ARKO ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ARKO's annualized net income for the quarter that ended in Dec. 2023 was $4 Mil. ARKO's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $381 Mil. Therefore, ARKO's annualized ROE % for the quarter that ended in Dec. 2023 was 1.13%.

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

ARKO' s ROE % Range Over the Past 10 Years
Min: -66.2   Med: 9.08   Max: 19.54
Current: 9.06

During the past 6 years, ARKO's highest ROE % was 19.54%. The lowest was -66.20%. And the median was 9.08%.

ARKO's ROE % is ranked better than
60.66% of 1088 companies
in the Retail - Cyclical industry
Industry Median: 5.97 vs ARKO: 9.06

ARKO ROE % Historical Data

The historical data trend for ARKO'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.

ARKO ROE % Chart

ARKO Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial -66.20 7.67 18.36 19.54 9.08

ARKO Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 13.65 -2.73 15.34 22.44 1.13

Competitive Comparison of ARKO's ROE %

For the Specialty Retail subindustry, ARKO'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.


ARKO's ROE % Distribution in the Retail - Cyclical Industry

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

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



ARKO ROE % Calculation

ARKO's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=34.369/( (380.834+376.101)/ 2 )
=34.369/378.4675
=9.08 %

ARKO's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=4.312/( (386.813+376.101)/ 2 )
=4.312/381.457
=1.13 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


ARKO  (NAS:ARKO) 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. 2023 )
=Net Income/Total Stockholders Equity
=4.312/381.457
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4.312 / 8932.64)*(8932.64 / 3685.074)*(3685.074 / 381.457)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.05 %*2.424*9.6605
=ROA %*Equity Multiplier
=0.12 %*9.6605
=1.13 %

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. 2023 )
=Net Income/Total Stockholders Equity
=4.312/381.457
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4.312 / 9.62) * (9.62 / 101.228) * (101.228 / 8932.64) * (8932.64 / 3685.074) * (3685.074 / 381.457)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.4482 * 0.095 * 1.13 % * 2.424 * 9.6605
=1.13 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 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.


ARKO ROE % Related Terms

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


ARKO (ARKO) Business Description

Traded in Other Exchanges
N/A
Address
8565 Magellan Parkway, Suite 400, Richmond, VA, USA, 23227-1150
ARKO Corp operates as a holding company. The company, through its subsidiaries, owns and operates convenience stores in the United States. Some of its regional store brands include Stop, Admiral, Apple Market, BreadBox, E-Z Mart, fas mart, Li'l Cricket, and Next Door Store. Its retail store offers hot food service, beverages, cigarettes & other tobacco products, candy, salty snacks, grocery, beer, and general merchandise. ARKO operates in four segments: Retail segment, Wholesale segment, fleet fueling segment, and GPM Petroleum segment. The company derives the majority of its revenue from retail and wholesale distribution of fuel.
Executives
Karet Laura Shapira director 301 GLADE RUN LANE, PITTSBURGH PA 15238
Avram Z Friedman director DAVIDSON KEMPNER CAPITAL MANAGEMENT LP, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Eyal Nuchamovitz officer: See Remarks 3284 NE 211 TERRACE, AVENTURA FL 33180
Kempner Partners Davidson 10 percent owner C/O MHD MANAGEMENT CO., 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Gpm Owner Llc 10 percent owner 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Starlette B Johnson director
Anthony Alexander Yoseloff 10 percent owner DAVIDSON KEMPNER CAPITAL MANAGEMENT LP, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Long-term Distressed Opportunities Fund Ii Lp 10 percent owner DK LONG-TERM DISTRESSED OPPS GP II LLC, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Capital Management Lp 10 percent owner 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Long-term Distressed Opportunties International Master Fund Ii Lp 10 percent owner DK LONG-TERM DISTRESSED OPPS GP II LLC, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Institutional Partners, L.p. 10 percent owner C/O DAVIDSON KEMPNER ADVISERS INC., 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner International, Ltd. 10 percent owner C/O OFFSHORE INCORPORATION LTD, OFFSHORE, INCORPORATION CENTRE, POBOX 957, RD TOWN, TORTOLA D8 00000
Andrew R Heyer director 501 MADISON AVENUE, FLOOR 5, NEW YORK NY 10019
Michael J Gade director 5501 HEADQUARTERS DRIVE, PLANO TX 75024
Sherman Iii Edmiston director ONE CITYPLACE DRIVE, SUITE 300, ONE CITYPLACE DRIVE, SUITE 300, ST. LOUIS MO 63141