Adrad Holdings (ASX:AHL) ROE % : 5.23% (As of Dec. 2023)

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What is Adrad Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Adrad Holdings's annualized net income for the quarter that ended in Dec. 2023 was A$6.2 Mil. Adrad Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was A$118.1 Mil. Therefore, Adrad Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 5.23%.

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

ASX:AHL' s ROE % Range Over the Past 10 Years
Min: 4.8 Med: 4.8 Max: 5.86
Current: 5.86

During the past 1 years, Adrad Holdings's highest ROE % was 5.86%. The lowest was 4.80%. And the median was 4.80%.

ASX:AHL's ROE % is ranked worse than
54.31% of 2957 companies
in the Industrial Products industry
Industry Median: 6.78 vs ASX:AHL: 5.86

Adrad Holdings ROE % Historical Data

The historical data trend for Adrad Holdings'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.

Adrad Holdings ROE % Chart

Adrad Holdings Annual Data

Trend

Jun23

ROE %

4.80

Adrad Holdings Semi-Annual Data
	Dec21	Dec22	Jun23	Dec23
ROE %	-	3.37	6.51	5.23

Competitive Comparison of Adrad Holdings's ROE %

For the Specialty Industrial Machinery subindustry, Adrad Holdings'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.

Adrad Holdings's ROE % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Adrad Holdings's ROE % distribution charts can be found below:

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

Adrad Holdings ROE % Calculation

Adrad Holdings's annualized ROE % for the fiscal year that ended in Jun. 2023 is calculated as

ROE %	=	Net Income (A: Jun. 2023 )	/	( (Total Stockholders Equity (A: . 20 )	+	Total Stockholders Equity (A: Jun. 2023 ))	/ count )
	=		/	( (	+	)	/ )
	=		/
	=	%

Adrad Holdings's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %	=	Net Income (Q: Dec. 2023 )	/	( (Total Stockholders Equity (Q: Jun. 2023 )	+	Total Stockholders Equity (Q: Dec. 2023 ))	/ count )
	=	6.172	/	( (116.886	+	119.264)	/ 2 )
	=	6.172	/	118.075
	=	5.23 %

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 two times the semi-annual (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.

Adrad Holdings (ASX:AHL) 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
=	6.172	/	118.075
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(6.172 / 147.018)	*	(147.018 / 189.9095)	*	(189.9095 / 118.075)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	4.2 %	*	0.7741	*	1.6084
=	ROA %	*	Equity Multiplier
=	3.25 %	*	1.6084
=	5.23 %

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
=	6.172	/	118.075
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(6.172 / 10.21)	*	(10.21 / 10.09)	*	(10.09 / 147.018)	*	(147.018 / 189.9095)	*	(189.9095 / 118.075)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.6045	*	1.0119	*	6.86 %	*	0.7741	*	1.6084
=	5.23 %

Note: The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.

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.

Adrad Holdings ROE % Related Terms

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Adrad Holdings (ASX:AHL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Adrad Holdings Ltd (ASX:AHL) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

26 Howards Road, Beverley, SA, AUS, 5009

Website

https://www.adradholdings.com.au

Adrad Holdings Ltd designs and manufactures a wide variety of original equipment and aftermarket heat exchange products for both mobile and stationary applications. The company operates in two segments which include Heat Transfer Solutions, and Automotive Aftermarket. Heat Transfer Solutions designs and manufactures industrial cooling solutions for use in road transport and heavy vehicles, mining, power generation, data centers, and rail industries. Automotive Aftermarket manufactures, imports, and distributes radiators, mobile and stationary heat exchange products, and a variety of automotive parts for the Australian and New Zealand automotive and industrial markets.