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Diversey Holdings (Diversey Holdings) ROE % : -32.94% (As of Mar. 2023)


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What is Diversey Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Diversey Holdings's annualized net income for the quarter that ended in Mar. 2023 was $-214 Mil. Diversey Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2023 was $651 Mil. Therefore, Diversey Holdings's annualized ROE % for the quarter that ended in Mar. 2023 was -32.94%.

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

DSEY' s ROE % Range Over the Past 10 Years
Min: -126.21   Med: -74.71   Max: -23.21
Current: -26.46

During the past 5 years, Diversey Holdings's highest ROE % was -23.21%. The lowest was -126.21%. And the median was -74.71%.

DSEY's ROE % is not ranked
in the Personal Services industry.
Industry Median: 8.55 vs DSEY: -26.46

Diversey Holdings ROE % Historical Data

The historical data trend for Diversey 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.

Diversey Holdings ROE % Chart

Diversey Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
- - - -126.21 -23.21

Diversey Holdings Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 -20.04 -18.18 -20.91 -35.55 -32.94

Competitive Comparison of Diversey Holdings's ROE %

For the Personal Services subindustry, Diversey 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.


Diversey Holdings's ROE % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Diversey Holdings's ROE % distribution charts can be found below:

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



Diversey Holdings ROE % Calculation

Diversey Holdings's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=-169.3/( (785.6+673)/ 2 )
=-169.3/729.3
=-23.21 %

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

ROE %=Net Income (Q: Mar. 2023 )/( (Total Stockholders Equity (Q: Dec. 2022 )+Total Stockholders Equity (Q: Mar. 2023 ))/ count )
=-214.4/( (673+628.8)/ 2 )
=-214.4/650.9
=-32.94 %

* 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 (Mar. 2023) net income data. ROE % is displayed in the 30-year financial page.


Diversey Holdings  (NAS:DSEY) 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: Mar. 2023 )
=Net Income/Total Stockholders Equity
=-214.4/650.9
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-214.4 / 2784)*(2784 / 4232.5)*(4232.5 / 650.9)
=Net Margin %*Asset Turnover*Equity Multiplier
=-7.7 %*0.6578*6.5025
=ROA %*Equity Multiplier
=-5.07 %*6.5025
=-32.94 %

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: Mar. 2023 )
=Net Income/Total Stockholders Equity
=-214.4/650.9
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-214.4 / -177.2) * (-177.2 / -85.6) * (-85.6 / 2784) * (2784 / 4232.5) * (4232.5 / 650.9)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.2099 * 2.0701 * -3.07 % * 0.6578 * 6.5025
=-32.94 %

Note: The net income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


Diversey Holdings ROE % Related Terms

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


Diversey Holdings (Diversey Holdings) Business Description

Traded in Other Exchanges
N/A
Address
1300 Altura Road, Suite 125, Fort Mill, SC, USA, 29708
Diversey Holdings Ltd provides high-performance cleaning, sanitation, and hygiene products for food safety and service, food and beverage plant operations, healthcare, floor care, housekeeping and room care, laundry, and hand care markets. In addition, it offers a wide range of value-added solutions, including food safety and application training and consulting, as well as auditing of hygiene and water management. It has two segments Institutional and Food & Beverage. The company generates maximum revenues from Europe followed by North America, Asia Pacific, Middle East & Africa, and Latin America.
Executives
Emily A. Ashworth director 1025 LAUREL OAK ROAD, VOORHEES NJ 08043
Tracy Long officer: President, North America 1300 ALTURA ROAD, SUITE 125, FORT MILL SC 29708
Eric J Foss director
Katherine S Zanotti director 431 E 9TH STREET, HINSDALE IL 60521
Rodney F Hochman director 21919 30TH DR SE, BOTHELL WA 98021
Somer Gundogdu officer: President, Emerging Markets C/O DIVERSEY HOLDINGS, LTD., 1300 ALTURA ROAD, SUITE 125, FORT MILL SC 29708
Bain Capital Investors Llc 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116
Bain Capital Partners Europe Iv, L.p. 10 percent owner 200 CLARENDON STREET, BAIN CAPITAL, L.P., BOSTON MA 02116
Bcpe Diamond Cayman Holding Ltd 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116
Bain Capital Partners Xi, L.p. 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116
Susan Bruno Levine director, 10 percent owner C/O DIVERSEY HOLDINGS, LTD., 1300 ALTURA ROAD, SUITE 125, FORT MILL SC 29708
Robert Michael Farkas director C/O DIVERSEY HOLDINGS, LTD., 1300 ALTURA ROAD, SUITE 125, FORT MILL SC 29708
Gaetano Redaelli officer: Chief Strtegc Development Ofcr C/O DIVERSEY HOLDINGS, LTD., 1300 ALTURA ROAD, SUITE 125, FORT MILL SC 29708
Jonathon Penn director C/O DIVERSEY HOLDINGS, LTD., 1300 ALTURA ROAD, SUITE 125, FORT MILL SC 29708
Sinead Mary Kwant officer: President, Western Europe C/O DIVERSEY HOLDINGS, LTD., 1300 ALTURA ROAD, SUITE 125, FORT MILL SC 29708