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MetLife (MetLife) ROE % : 8.72% (As of Dec. 2023)


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What is MetLife ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. MetLife's annualized net income for the quarter that ended in Dec. 2023 was $2,428 Mil. MetLife's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $27,837 Mil. Therefore, MetLife's annualized ROE % for the quarter that ended in Dec. 2023 was 8.72%.

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

MET' s ROE % Range Over the Past 10 Years
Min: 1.25   Med: 8.45   Max: 10.85
Current: 5.33

During the past 13 years, MetLife's highest ROE % was 10.85%. The lowest was 1.25%. And the median was 8.45%.

MET's ROE % is ranked worse than
70.52% of 485 companies
in the Insurance industry
Industry Median: 9.65 vs MET: 5.33

MetLife ROE % Historical Data

The historical data trend for MetLife'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.

MetLife ROE % Chart

MetLife Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.92 7.69 9.65 10.85 5.27

MetLife 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 22.97 1.03 5.15 7.00 8.72

Competitive Comparison of MetLife's ROE %

For the Insurance - Life subindustry, MetLife'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.


MetLife's ROE % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, MetLife's ROE % distribution charts can be found below:

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



MetLife ROE % Calculation

MetLife'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 )
=1578/( (29881+30015)/ 2 )
=1578/29948
=5.27 %

MetLife'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 )
=2428/( (25658+30015)/ 2 )
=2428/27836.5
=8.72 %

* 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.


MetLife  (NYSE:MET) 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
=2428/27836.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2428 / 76112)*(76112 / 669852)*(669852 / 27836.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.19 %*0.1136*24.0638
=ROA %*Equity Multiplier
=0.36 %*24.0638
=8.72 %

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
=2428/27836.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2428 / 3764) * (3764 / 4840) * (4840 / 76112) * (76112 / 669852) * (669852 / 27836.5)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 0.6451 * 0.7777 * 6.36 % * 0.1136 * 24.0638
=8.72 %

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.


MetLife ROE % Related Terms

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


MetLife (MetLife) Business Description

Address
200 Park Avenue, New York, NY, USA, 10166-0188
MetLife is one of the largest life insurers in the U.S. by assets and provides a variety of insurance and financial services products. The company is organized into five segments: U.S., Asia, Latin America, EMEA, and MetLife Holdings. The U.S. business contributes around 41% of earnings and is broken into the group benefits segment and the retirement solutions segment. The Asia segment contributes around 28% of earnings and is mainly composed of the Japan business with increasing contributions from India, China, and Bangladesh. The company also holds leading market positions in Mexico and Chile with the Latin America segment contributing around 6% of earnings. The EMEA and the MetLife segments contribute around 5% and 20% of earnings, respectively.
Executives
Marlene Debel officer: EVP & Chief Risk Officer METLIFE, INC., 200 PARK AVENUE, NEW YORK NY 10166
Jeh C. Johnson director 77 BEALE ST., P.O. BOX 770000, SAN FRANCISCO CA 94177
Bill Pappas officer: EVP, Global Tech. & Ops. METLIFE, INC., 200 PARK AVENUE, NEW YORK NY 10166
Robert Glenn Hubbard director 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
Susan M Podlogar officer: EVP & Chief HR Officer 200 PARK AVENUE, NEW YORK NY 10166
Steven J Goulart officer: EVP & Chief Investment Officer 200 PARK AVENUE, NEW YORK NY 10166
Michel Khalaf director, officer: President & CEO 200 PARK AVENUE, NEW YORK NY 10166
Carla A Harris director 702 SW 8TH STREET, BENTONVILLE AR 72716
William E Kennard director METLIFE, INC., 200 PARK AVENUE, NEW YORK NY 10166
Catherine R Kinney director C/O QTS REALTY TRUST INC., 12851 FOSTER STREET, OVERLAND PARK KS 66213
Cheryl W Grise director NORTHEAST UTILITIES, 107 SELDEN STREET, BERLIN CT 06037
Gerald L Hassell director
Mark A Weinberger director METLIFE, INC., 200 PARK AVENUE, NEW YORK NY 10166
David L Herzog director 180 MAIDEN LANE, NEW YORK NY 10038
Denise M Morrison director METLIFE, 200 PARK AVENUE, NEW YORK NY 10166

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