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Charter Court Financial Services Group (CHIX:CCFSL) ROE % : 26.49% (As of Jun. 2019)


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What is Charter Court Financial Services Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Charter Court Financial Services Group's annualized net income for the quarter that ended in Jun. 2019 was £124.6 Mil. Charter Court Financial Services Group's average Total Stockholders Equity over the quarter that ended in Jun. 2019 was £470.4 Mil. Therefore, Charter Court Financial Services Group's annualized ROE % for the quarter that ended in Jun. 2019 was 26.49%.

The historical rank and industry rank for Charter Court Financial Services Group's ROE % or its related term are showing as below:

CHIX:CCFSL's ROE % is not ranked *
in the Banks industry.
Industry Median: 9.64
* Ranked among companies with meaningful ROE % only.

Charter Court Financial Services Group ROE % Historical Data

The historical data trend for Charter Court Financial Services Group'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.

Charter Court Financial Services Group ROE % Chart

Charter Court Financial Services Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Negative Equity 29.40 18.67 28.60 30.77

Charter Court Financial Services Group Semi-Annual Data
Dec14 Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19
ROE % Get a 7-Day Free Trial 37.34 22.51 38.35 23.20 26.49

Competitive Comparison of Charter Court Financial Services Group's ROE %

For the Mortgage Finance subindustry, Charter Court Financial Services Group'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.


Charter Court Financial Services Group's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Charter Court Financial Services Group's ROE % distribution charts can be found below:

* The bar in red indicates where Charter Court Financial Services Group's ROE % falls into.



Charter Court Financial Services Group ROE % Calculation

Charter Court Financial Services Group's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=120.8/( (335+450.3)/ 2 )
=120.8/392.65
=30.77 %

Charter Court Financial Services Group's annualized ROE % for the quarter that ended in Jun. 2019 is calculated as

ROE %=Net Income (Q: Jun. 2019 )/( (Total Stockholders Equity (Q: Dec. 2018 )+Total Stockholders Equity (Q: Jun. 2019 ))/ count )
=124.6/( (450.3+490.5)/ 2 )
=124.6/470.4
=26.49 %

* 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 two times the semi-annual (Jun. 2019) net income data. ROE % is displayed in the 30-year financial page.


Charter Court Financial Services Group  (CHIX:CCFSL) 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: Jun. 2019 )
=Net Income/Total Stockholders Equity
=124.6/470.4
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(124.6 / 250)*(250 / 8027.95)*(8027.95 / 470.4)
=Net Margin %*Asset Turnover*Equity Multiplier
=49.84 %*0.0311*17.0662
=ROA %*Equity Multiplier
=1.55 %*17.0662
=26.49 %

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: Jun. 2019 )
=Net Income/Total Stockholders Equity
=124.6/470.4
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (124.6 / 165.2) * (165.2 / 250) * (250 / 8027.95) * (8027.95 / 470.4)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7542 * 66.08 % * 0.0311 * 17.0662
=26.49 %

Note: The net income data used here is two times the semi-annual (Jun. 2019) net income data. The Revenue data used here is two times the semi-annual (Jun. 2019) 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.


Charter Court Financial Services Group ROE % Related Terms

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Charter Court Financial Services Group (CHIX:CCFSL) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
2 Charter Court, Broadlands, Wolverhampton, GBR, WV10 6TD
Charter Court Financial Services Group PLC provides financial services in mortgage loans, online retail savings, and mortgage administration. The group operates through following segments: The Buy to let Lending segment engages in the long-term first charge loans to landlords. The Residential Lending segment engages in the first charge loans to owner-occupiers. The Short Term Lending segment engages in the short term bridging finance to owner-occupiers, landlords, and property developers. The Second Charge Lending segment engages in the long-term second charge loans. The Other segment engages in the central functions of the group, including treasury and third-party mortgage servicing.

Charter Court Financial Services Group (CHIX:CCFSL) Headlines

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