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Albertsons (Albertsons) ROE %

: 60.95% (As of Nov. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Albertsons's annualized net income for the quarter that ended in Nov. 2023 was $1,446 Mil. Albertsons's average Total Stockholders Equity over the quarter that ended in Nov. 2023 was $2,372 Mil. Therefore, Albertsons's annualized ROE % for the quarter that ended in Nov. 2023 was 60.95%.

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

ACI' s ROE % Range Over the Past 10 Years
Min: -62.38   Med: 17.11   Max: 98.47
Current: 73.94

During the past 11 years, Albertsons's highest ROE % was 98.47%. The lowest was -62.38%. And the median was 17.11%.

ACI's ROE % is ranked better than
96.69% of 302 companies
in the Retail - Defensive industry
Industry Median: 9.665 vs ACI: 73.94

Albertsons ROE % Historical Data

The historical data trend for Albertsons'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.

Albertsons Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.20 25.02 47.20 74.48 65.30

Albertsons Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
ROE % 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 Premium Member Only Premium Member Only Premium Member Only 57.70 102.43 92.44 48.16 60.95

Competitive Comparison

For the Grocery Stores subindustry, Albertsons'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.


Albertsons ROE % Distribution

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

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



Albertsons ROE % Calculation

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

ROE %=Net Income (A: Feb. 2023 )/( (Total Stockholders Equity (A: Feb. 2022 )+Total Stockholders Equity (A: Feb. 2023 ))/ count )
=1513.5/( (3024.6+1610.7)/ 2 )
=1513.5/2317.65
=65.30 %

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

ROE %=Net Income (Q: Nov. 2023 )/( (Total Stockholders Equity (Q: Aug. 2023 )+Total Stockholders Equity (Q: Nov. 2023 ))/ count )
=1445.6/( (2216.6+2527.3)/ 2 )
=1445.6/2371.95
=60.95 %

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


Albertsons  (NYSE:ACI) 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: Nov. 2023 )
=Net Income/Total Stockholders Equity
=1445.6/2371.95
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1445.6 / 74229.2)*(74229.2 / 26409.5)*(26409.5 / 2371.95)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.95 %*2.8107*11.1341
=ROA %*Equity Multiplier
=5.48 %*11.1341
=60.95 %

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: Nov. 2023 )
=Net Income/Total Stockholders Equity
=1445.6/2371.95
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1445.6 / 1826) * (1826 / 2360) * (2360 / 74229.2) * (74229.2 / 26409.5) * (26409.5 / 2371.95)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7917 * 0.7737 * 3.18 % * 2.8107 * 11.1341
=60.95 %

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


Albertsons ROE % Related Terms

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


Albertsons (Albertsons) Business Description

Traded in Other Exchanges
Address
250 Parkcenter Boulevard, Boise, ID, USA, 83706
Albertsons is the second-largest conventional grocer in America, operating 2,271 stores under 24 banners in 34 states (as of the end of fiscal 2022). Around 75% of stores have pharmacies, while nearly 20% also sell fuel. Albertsons has a significant private-label operation, accounting for around 25% of sales (excluding fuel). While its own brand assortment is mainly manufactured by third parties, Albertsons operates 19 food production plants (as of the end of fiscal 2022). Albertsons is a top two grocer in two thirds of its major markets (as of early 2022, according to company data), and virtually all of its sales come from the United States. Narrow-moat Kroger has offered to acquire Albertsons in a $25 billion deal; if the transaction is approved by regulators, it should close in 2024.
Executives
Thomas M Moriarty officer: EVP General Counsel & CPO 100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417
Robert Bruce Larson officer: Chief Accounting Officer 3103 S OLD HICKORY, BOISE ID 83712
Klaff Realty Lp 10 percent owner, other: See Remarks 180 N. MICHIGAN AVE, SUITE 300, CHICAGO IL 60601
Mohammad Omer Gajial officer: EVP, Pharmacy & Health 250 E. PARKCENTER BLVD., BOISE ID 83706
Jubilee Abs Holding Llc other: See Footnote (2) 4300 E. FIFTH AVE., COLUMBUS OH 43219
Kimco Realty Corp other: See Remarks 500 NORTH BROADWAY, SUITE 201, JERICHO NY 11753
Susan Morris officer: See Remarks ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Evan Rainwater officer: EVP, Supp Chain&Manufacturing 250 E. PARKCENTER BLVD., BOISE ID 83706
Chris Rupp officer: See Remarks ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Anuj Dhanda officer: See Remarks ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Sharon Mccollam officer: President & CFO C/O OFFICEMAX INCORPORATED, 263 SHUMAN BLVD., NAPERVILLE IL 60563
Jennifer Saenz officer: Chief Marketing Officer 250 E. PARKCENTER BLVD., BOISE ID 83706
Chan Galbato director 191 E NORTH AVENUE, CAROL STREAM IL 60188
Stone West Mary E director C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861
Shant Babikian director C/O HPS INVESTMENT PARTNERS, LLC, 40 WEST 57TH STREET, 33RD FLOO NY 10019