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Reynolds Consumer Products (Reynolds Consumer Products) ROE % : 28.28% (As of Dec. 2023)


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What is Reynolds Consumer Products ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Reynolds Consumer Products's annualized net income for the quarter that ended in Dec. 2023 was $548 Mil. Reynolds Consumer Products's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,938 Mil. Therefore, Reynolds Consumer Products's annualized ROE % for the quarter that ended in Dec. 2023 was 28.28%.

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

REYN' s ROE % Range Over the Past 10 Years
Min: 14.24   Med: 91.09   Max: Negative Equity
Current: 15.81

During the past 8 years, Reynolds Consumer Products's highest ROE % was Negative Equity%. The lowest was 14.24%. And the median was 91.09%.

REYN's ROE % is ranked better than
82.59% of 379 companies
in the Packaging & Containers industry
Industry Median: 6.13 vs REYN: 15.81

Reynolds Consumer Products ROE % Historical Data

The historical data trend for Reynolds Consumer Products'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.

Reynolds Consumer Products ROE % Chart

Reynolds Consumer Products Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Negative Equity 91.09 19.22 14.24 15.48

Reynolds Consumer Products 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 23.13 3.68 14.33 16.64 28.28

Competitive Comparison of Reynolds Consumer Products's ROE %

For the Packaging & Containers subindustry, Reynolds Consumer Products'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.


Reynolds Consumer Products's ROE % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Reynolds Consumer Products's ROE % distribution charts can be found below:

* The bar in red indicates where Reynolds Consumer Products's ROE % falls into.



Reynolds Consumer Products ROE % Calculation

Reynolds Consumer Products'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 )
=298/( (1868+1983)/ 2 )
=298/1925.5
=15.48 %

Reynolds Consumer Products'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 )
=548/( (1892+1983)/ 2 )
=548/1937.5
=28.28 %

* 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.


Reynolds Consumer Products  (NAS:REYN) 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
=548/1937.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(548 / 4024)*(4024 / 4809)*(4809 / 1937.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.62 %*0.8368*2.4821
=ROA %*Equity Multiplier
=11.4 %*2.4821
=28.28 %

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
=548/1937.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (548 / 712) * (712 / 824) * (824 / 4024) * (4024 / 4809) * (4809 / 1937.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7697 * 0.8641 * 20.48 % * 0.8368 * 2.4821
=28.28 %

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.


Reynolds Consumer Products ROE % Related Terms

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


Reynolds Consumer Products (Reynolds Consumer Products) Business Description

Traded in Other Exchanges
N/A
Address
1900 W. Field Court, Lake Forest, IL, USA, 60045
Reynolds Consumer Products Inc is a provider of household products. The firm is engaged in the production and sales of cooking products, waste and storage products, and tableware. It operates through four reportable segments namely, Reynolds Cooking and Baking, Hefty Waste and Storage, Hefty Tableware, and Presto Products. Reynolds Cooking and Baking segment produce branded and store brand aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags and slow cooker liners.
Executives
Christine Montenegro Mcgrath director C/O REYNOLDS CONSUMER PRODUCTS INC., 1900 W. FIELD COURT, LAKE FOREST IL 60045
Chris Mayrhofer officer: Vice President and Controller C/O REYNOLDS CONSUMER PRODUCTS, 1900 W. FIELD CT., LAKE FOREST IL 60045
Christopher Corey officer: President, Presto Products C/O REYNOLDS CONSUMER PRODUCTS, INC., 1900 W. FIELD COURT, LAKE FOREST IL 60045
Mark D. Swartzberg officer: VP Investor Relations C/O REYNOLDS CONSUMER PRODUCTS INC., 1900 W. FIELD COURT, LAKE FOREST IL 60045
Nathan D. Lowe officer: VP, Fin. Planning & Analysis C/O REYNOLDS CONSUMER PRODUCTS INC., 1900 W. FIELD COURT, LAKE FOREST IL 60045
V Lance Mitchell director, officer: President and CEO 1900 W. FIELD COURT, LAKE FOREST IL 60045
Michael E. Graham officer: Chief Financial Officer REYNOLDS CONSUMER PRODUCT, 1900 W. FIELD COURT, LAKE FOREST IL 60045
Stephen C. Estes officer: Chief Administrative Officer 1900 W. FIELD COURT, LAKE FOREST IL 60045
Clyde David Watson officer: Chief Legal Counsel/Corp Sec 1900 W. FIELD COURT, LAKE FOREST IL 60045
Valerie Elizabeth Miller officer: EVP-HR 1900 W. FIELD COURT, LAKE FOREST IL 60045
Michael F. Mcmahon officer: VP-Senior Sales Team 1900 W. FIELD COURT, LAKE FOREST IL 60045
Rita Fisher officer: Chief Information Officer/EVP 1900 W. FIELD COURT, LAKE FOREST IL 60045
Allen Hugli director C/O RANK GROUP, LEVEL II, 148 QUAY ST, AUCKLAND Q2 00000
Lisa M Smith officer: President, Hefty Waste&Storage 1900 W. FIELD COURT, C/O REYNOLDS CONSUMER PRODUCTS INC., LAKE FOREST IL 60045
Gregory Alan Cole director PO BOX 3515, AUCKLAND Q2 00000