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Booz Allen Hamilton Holding (Booz Allen Hamilton Holding) ROE % : 53.98% (As of Dec. 2023)


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What is Booz Allen Hamilton Holding ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Booz Allen Hamilton Holding's annualized net income for the quarter that ended in Dec. 2023 was $583 Mil. Booz Allen Hamilton Holding's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,079 Mil. Therefore, Booz Allen Hamilton Holding's annualized ROE % for the quarter that ended in Dec. 2023 was 53.98%.

The historical rank and industry rank for Booz Allen Hamilton Holding's ROE % or its related term are showing as below:

BAH' s ROE % Range Over the Past 10 Years
Min: 26.67   Med: 63.1   Max: 129.88
Current: 38.09

During the past 13 years, Booz Allen Hamilton Holding's highest ROE % was 129.88%. The lowest was 26.67%. And the median was 63.10%.

BAH's ROE % is ranked better than
93.47% of 1042 companies
in the Business Services industry
Industry Median: 8.685 vs BAH: 38.09

Booz Allen Hamilton Holding ROE % Historical Data

The historical data trend for Booz Allen Hamilton Holding'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.

Booz Allen Hamilton Holding ROE % Chart

Booz Allen Hamilton Holding Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 67.62 63.01 63.19 44.09 26.67

Booz Allen Hamilton Holding Quarterly Data
Mar19 Jun19 Sep19 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 Premium Member Only Premium Member Only 10.24 -24.91 64.26 65.37 53.98

Competitive Comparison of Booz Allen Hamilton Holding's ROE %

For the Consulting Services subindustry, Booz Allen Hamilton Holding'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.


Booz Allen Hamilton Holding's ROE % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Booz Allen Hamilton Holding's ROE % distribution charts can be found below:

* The bar in red indicates where Booz Allen Hamilton Holding's ROE % falls into.



Booz Allen Hamilton Holding ROE % Calculation

Booz Allen Hamilton Holding's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=271.791/( (1046.07+992.002)/ 2 )
=271.791/1019.036
=26.67 %

Booz Allen Hamilton Holding'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 )
=582.576/( (1072.13+1086.243)/ 2 )
=582.576/1079.1865
=53.98 %

* 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.


Booz Allen Hamilton Holding  (NYSE:BAH) 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
=582.576/1079.1865
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(582.576 / 10279.204)*(10279.204 / 6818.6685)*(6818.6685 / 1079.1865)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.67 %*1.5075*6.3183
=ROA %*Equity Multiplier
=8.55 %*6.3183
=53.98 %

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
=582.576/1079.1865
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (582.576 / 829.536) * (829.536 / 990.232) * (990.232 / 10279.204) * (10279.204 / 6818.6685) * (6818.6685 / 1079.1865)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7023 * 0.8377 * 9.63 % * 1.5075 * 6.3183
=53.98 %

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.


Booz Allen Hamilton Holding ROE % Related Terms

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


Booz Allen Hamilton Holding (Booz Allen Hamilton Holding) Business Description

Traded in Other Exchanges
Address
8283 Greensboro Drive, Hamilton Building, McLean, VA, USA, 22102
Booz Allen Hamilton Holding Corp is a provider of management consulting services to the U.S. government. Other services offered include technology, such as cloud computing and cybersecurity consulting, and engineering consulting. The consulting services are focused on defense, intelligence, and civil markets. In addition to the U.S. government, Booz Allen Hamilton provides its management and technology consulting services to large corporations, institutions, and nonprofit organizations. The company assists clients in long-term engagements around the globe.
Executives
Kristine Anderson officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Melody C Barnes director 1631 MONUMENT AVENUE, RICHMOND VA 23220
Ralph W Shrader director, officer: President and CEO, other: Member of 13D Group 8283 GREENSBORO, MCLEAN VA 22102
Horacio Rozanski officer: Executive Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Nancy Laben officer: EVP and General Counsel, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Susan L Penfield officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Elizabeth M Thompson officer: SVP & Chief Personnel Officer, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Rory P Read director ONE DELL WAY, ROUND ROCK TX 78682
Richard Crowe officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Matthew Calderone officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Lloyd Jr Howell officer: Executive Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Thomas Pfeifer officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Karen M Dahut officer: Senior Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Scott M Murphy officer: VP, PAO & Controller 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Gretchen W Mcclain director XYLEM INC., 1133 WESTCHESTER AVENUE, SUITE N200, WHITE PLAINS NY 10604