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Hamilton Beach Brands Holding Co (Hamilton Beach Brands Holding Co) ROE %

: 56.91% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hamilton Beach Brands Holding Co's annualized net income for the quarter that ended in Dec. 2023 was $78.3 Mil. Hamilton Beach Brands Holding Co's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $137.5 Mil. Therefore, Hamilton Beach Brands Holding Co's annualized ROE % for the quarter that ended in Dec. 2023 was 56.91%.

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

HBB' s ROE % Range Over the Past 10 Years
Min: -29.02   Med: 25.91   Max: 79.5
Current: 19.83

During the past 9 years, Hamilton Beach Brands Holding Co's highest ROE % was 79.50%. The lowest was -29.02%. And the median was 25.91%.

HBB's ROE % is ranked better than
86.71% of 414 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 6.275 vs HBB: 19.83

Hamilton Beach Brands Holding Co ROE % Historical Data

The historical data trend for Hamilton Beach Brands Holding Co'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.

Hamilton Beach Brands Holding Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only -29.02 79.50 23.36 22.28 18.57

Hamilton Beach Brands Holding Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 23.42 -15.73 0.37 33.60 56.91

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Hamilton Beach Brands Holding Co'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.


Hamilton Beach Brands Holding Co ROE % Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Hamilton Beach Brands Holding Co's ROE % distribution charts can be found below:

* The bar in red indicates where Hamilton Beach Brands Holding Co's ROE % falls into.



Hamilton Beach Brands Holding Co ROE % Calculation

Hamilton Beach Brands Holding Co'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 )
=25.242/( (124.534+147.267)/ 2 )
=25.242/135.9005
=18.57 %

Hamilton Beach Brands Holding Co'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 )
=78.276/( (127.82+147.267)/ 2 )
=78.276/137.5435
=56.91 %

* 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.


Hamilton Beach Brands Holding Co  (NYSE:HBB) 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
=78.276/137.5435
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(78.276 / 826.6)*(826.6 / 381.811)*(381.811 / 137.5435)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.47 %*2.1649*2.7759
=ROA %*Equity Multiplier
=20.5 %*2.7759
=56.91 %

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
=78.276/137.5435
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (78.276 / 98.512) * (98.512 / 99.956) * (99.956 / 826.6) * (826.6 / 381.811) * (381.811 / 137.5435)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7946 * 0.9856 * 12.09 % * 2.1649 * 2.7759
=56.91 %

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.


Hamilton Beach Brands Holding Co ROE % Related Terms

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


Hamilton Beach Brands Holding Co (Hamilton Beach Brands Holding Co) Business Description

Traded in Other Exchanges
N/A
Address
4421 Waterfront Drive, Glen Allen, VA, USA, 23060
Hamilton Beach Brands Holding Co, through its subsidiaries, is engaged in consumer, commercial and specialty small appliances and specialty retail. It designs, markets, and distributes small branded electric household and specialty housewares small appliances, as well as commercial products for restaurants, bars, and hotels.
Executives
Sarah M Cunningham officer: Sr. VP Chief Financial Officer 14519 AUGUSTA LANE, ASHLAND X1 23005
Gregory H Trepp officer: President and CEO 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Paul Dwinelle Furlow director 4421 WATERFRONT DR, GLEN ALLEN VA 23060
Linda Jean Woermer director, officer: PFO 4421 WATERFRONT DR., GLEN ALLEN VA 33705
Workman Lawrence Kenneth Jr officer: SVP, GC and Secretary 4421 WATERFRONT DR., GLEN ALLEN VA 23060
Butler John C Jr director, other: Member of a Group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Helen Rankin Butler other: Member of a Group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Chloe O Rankin other: Member of a Group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Claiborne R Rankin other: Member of a Group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
David B Williams director 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Clara R Williams other: Member of a Group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Roger F Rankin director, other: Member of a Group C/O NACCO INDUSTRIES INC, 5875 LANDERBROOK DRIVE, MAYFIELD HEIGHTS OH 44124
Rankin Alfred M Et Al director, officer: Executive Chairman 5875 LANDERBROOK DR, MAYFIELD HEIGHTS OH 44124
Rankin Corbin other: Member of a Group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Alison A Rankin other: Member of a Group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124