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Warby Parker (Warby Parker) ROE % : -25.13% (As of Dec. 2023)


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What is Warby Parker ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Warby Parker's annualized net income for the quarter that ended in Dec. 2023 was $-76.2 Mil. Warby Parker's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $303.2 Mil. Therefore, Warby Parker's annualized ROE % for the quarter that ended in Dec. 2023 was -25.13%.

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

WRBY' s ROE % Range Over the Past 10 Years
Min: -48.54   Med: -33.93   Max: -21.19
Current: -21.19

During the past 5 years, Warby Parker's highest ROE % was -21.19%. The lowest was -48.54%. And the median was -33.93%.

WRBY's ROE % is ranked worse than
65.84% of 811 companies
in the Medical Devices & Instruments industry
Industry Median: 0.29 vs WRBY: -21.19

Warby Parker ROE % Historical Data

The historical data trend for Warby Parker'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.

Warby Parker ROE % Chart

Warby Parker Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
- -29.29 -48.54 -38.56 -21.48

Warby Parker Quarterly Data
Dec19 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 -28.39 -14.84 -21.29 -22.96 -25.13

Competitive Comparison of Warby Parker's ROE %

For the Medical Instruments & Supplies subindustry, Warby Parker'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.


Warby Parker's ROE % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Warby Parker's ROE % distribution charts can be found below:

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



Warby Parker ROE % Calculation

Warby Parker'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 )
=-63.197/( (286.646+301.787)/ 2 )
=-63.197/294.2165
=-21.48 %

Warby Parker'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 )
=-76.188/( (304.611+301.787)/ 2 )
=-76.188/303.199
=-25.13 %

* 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.


Warby Parker  (NYSE:WRBY) 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
=-76.188/303.199
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-76.188 / 647.42)*(647.42 / 577.5955)*(577.5955 / 303.199)
=Net Margin %*Asset Turnover*Equity Multiplier
=-11.77 %*1.1209*1.905
=ROA %*Equity Multiplier
=-13.19 %*1.905
=-25.13 %

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
=-76.188/303.199
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-76.188 / -76.608) * (-76.608 / -86.276) * (-86.276 / 647.42) * (647.42 / 577.5955) * (577.5955 / 303.199)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9945 * 0.8879 * -13.33 % * 1.1209 * 1.905
=-25.13 %

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.


Warby Parker ROE % Related Terms

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


Warby Parker (Warby Parker) Business Description

Traded in Other Exchanges
N/A
Address
233 Spring Street, 6th Floor East, New York, NY, USA, 10013
Warby Parker Inc is engaged in designing and developing designer prescription glasses and contacts to eye exams and vision tests. Brand that operates at the intersection of design, technology, healthcare, and social enterprise. The company primarily derives revenue from the sales of eyewear products, optical services, and accessories. The firm sells products and services through its stores, website, and mobile apps. Revenue generated from eyewear products includes the sales of prescription and non-prescription optical glasses and sunglasses, contact lenses, eyewear accessories, and expedited shipping charges.
Executives
Steven Clive Miller officer: Chief Financial Officer C/O WARBY PARKER INC., 233 SPRING STREET, 6TH FLOOR, NEW YORK NY 10013
David Abraham Gilboa director, officer: Co-Chief Executive Officer C/O WARBY PARKER INC., 233 SPRING STREET, 6TH FLOOR, NEW YORK NY 10013
Neil Harris Blumenthal director, officer: Co-Chief Executive Officer C/O WARBY PARKER INC., 233 SPRING STREET, 6TH FLOOR, NEW YORK NY 10013
Durable Capital Partners Lp 10 percent owner 4747 BETHESDA AVENUE, SUITE #1002, BETHESDA MD 20814
Teresa Briggs director 2225 LAWSON LANE, SANTA CLARA CA 95054
Ronald A Williams director
Jeffrey Jacob Raider director C/O WARBY PARKER INC., 233 SPRING STREET, 6TH FLOOR, NEW YORK NY 10013
Andrew Hunt director C/O ELEPHANT PARTNERS, 11 NEWBURY STREET, 5TH FLOOR, BOSTON MA 02116
D1 Capital Partners L.p. 10 percent owner 9 WEST 57TH STREET, 36TH FLOOR, NEW YORK NY 10019
Joel E Cutler director, 10 percent owner C/O GENERAL CATALYST PARTNERS, 20 UNIVERSITY ROAD, SUITE 450, CAMBRIDGE MA 02138
Youngme E Moon director 75 NETWORK DRIVE, BURLINGTON MA 01803
Daniel S. Sundheim 10 percent owner C/O D1 CAPITAL PARTNERS L.P., 9 WEST 57TH STREET, 36TH FLOOR, NEW YORK NY 10019
General Catalyst Group V Lp 10 percent owner c/o General Catalyst Group Management LL, 20 University Road Ste 450, Cambridge MA 02138
Gabrielle Sulzberger director 450 LEXINGTON AVENUE, FLOOR 13, NEW YORK NY 10017
General Catalyst Group Management Holdings, L.p. 10 percent owner 20 UNIVERSITY ROAD, 4TH FLOOR, CAMBRIDGE MA 02138