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WestRock Co (WestRock Co) ROE % : -0.89% (As of Dec. 2023)


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What is WestRock Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. WestRock Co's annualized net income for the quarter that ended in Dec. 2023 was $-90 Mil. WestRock Co's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $10,114 Mil. Therefore, WestRock Co's annualized ROE % for the quarter that ended in Dec. 2023 was -0.89%.

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

WRK' s ROE % Range Over the Past 10 Years
Min: -16.69   Med: 7.26   Max: 17.48
Current: -16.69

During the past 13 years, WestRock Co's highest ROE % was 17.48%. The lowest was -16.69%. And the median was 7.26%.

WRK's ROE % is ranked worse than
95.8% of 381 companies
in the Packaging & Containers industry
Industry Median: 6.32 vs WRK: -16.69

WestRock Co ROE % Historical Data

The historical data trend for WestRock 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.

WestRock Co ROE % Chart

WestRock Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.46 -6.20 7.52 8.19 -15.35

WestRock Co 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 1.58 -75.78 8.22 4.37 -0.89

Competitive Comparison of WestRock Co's ROE %

For the Packaging & Containers subindustry, WestRock 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.


WestRock Co's ROE % Distribution in the Packaging & Containers Industry

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

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



WestRock Co ROE % Calculation

WestRock Co's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as

ROE %=Net Income (A: Sep. 2023 )/( (Total Stockholders Equity (A: Sep. 2022 )+Total Stockholders Equity (A: Sep. 2023 ))/ count )
=-1649/( (11402+10080.7)/ 2 )
=-1649/10741.35
=-15.35 %

WestRock 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 )
=-89.6/( (10080.7+10147.8)/ 2 )
=-89.6/10114.25
=-0.89 %

* 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.


WestRock Co  (NYSE:WRK) 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
=-89.6/10114.25
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-89.6 / 18480)*(18480 / 27094.95)*(27094.95 / 10114.25)
=Net Margin %*Asset Turnover*Equity Multiplier
=-0.48 %*0.682*2.6789
=ROA %*Equity Multiplier
=-0.33 %*2.6789
=-0.89 %

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
=-89.6/10114.25
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-89.6 / -68) * (-68 / 598.8) * (598.8 / 18480) * (18480 / 27094.95) * (27094.95 / 10114.25)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.3176 * -0.1136 * 3.24 % * 0.682 * 2.6789
=-0.89 %

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.


WestRock Co ROE % Related Terms

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


WestRock Co (WestRock Co) Business Description

Traded in Other Exchanges
Address
1000 Abernathy Road, North East, Atlanta, GA, USA, 30328
WestRock manufactures corrugated packaging and consumer packaging, such as folding cartons and paperboard. After the merger of RockTenn and MeadWestvaco in fall 2015, WestRock became the largest North American producer of solid bleached sulfate and the second-largest producer of containerboard, which is used in the production of shipping containers.
Executives
Currey M Russell director PO BOX 4098, NORCROSS GA 30091
John L O'neal officer: President, Global Paper 1155 PERIMETER CENTER WEST, ATLANTA GA 30338
James E Nevels director C/O TASTY BAKING COMPANY, NAVY YARD CORP. CTR., THREE CRESCENT DR., PHILADELPHIA PA 19112
Samuel W. Shoemaker officer: President, Consumer Packaging 1000 ABERNATHY ROAD NE, SUITE 125, ATLANTA GA 30328
Dmitri L Stockton director 777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902
Thomas Stigers officer: President, Mill Operations 1000 ABERNATHY ROAD NE, SUITE 125, ATLANTA GA 30328
Denise R Singleton officer: EVP, GC and Secretary 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Jean Savage director 14221 N DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
David B Sewell officer: Chief Executive Officer 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Alexander W Pease officer: Chief Financial Officer 5605 CARNEGIE BOULEVARD, SUTIE 500, CHARLOTTE NC 28209
Patrick M. Kivits officer: Pres, Consumer PKG 1200 WILLOW LAKE BLVD., P.O. BOX 64683, ST. PAUL MN 55110
Peter C Durette officer: President, Corrugated Pkg. MEADWESTVACO, 501 SOUTH 5TH STREET, RICHMOND VA 23219-0501
Jeffrey Wayne Chalovich officer: President - Corrugated Pkging 504 THRASHER STREET, NORCROSS GA 30071
Steven C Voorhees director, officer: CEO - President 214 N TRYON STREET, CHARLOTTE NC 28202
Patrick Edward Lindner officer: President, Consumer Packaging 501 SOUTH 5TH STREET, RICHMOND VA 23219

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