GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » European Wax Center Inc (NAS:EWCZ) » Definitions » ROE %

European Wax Center (European Wax Center) ROE % : 10.88% (As of Dec. 2023)


View and export this data going back to 2021. Start your Free Trial

What is European Wax Center ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. European Wax Center's annualized net income for the quarter that ended in Dec. 2023 was $9.9 Mil. European Wax Center's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $91.4 Mil. Therefore, European Wax Center's annualized ROE % for the quarter that ended in Dec. 2023 was 10.88%.

The historical rank and industry rank for European Wax Center's ROE % or its related term are showing as below:

EWCZ' s ROE % Range Over the Past 10 Years
Min: -7.76   Med: 2.78   Max: 11
Current: 9.82

During the past 5 years, European Wax Center's highest ROE % was 11.00%. The lowest was -7.76%. And the median was 2.78%.

EWCZ's ROE % is ranked better than
63.06% of 1819 companies
in the Consumer Packaged Goods industry
Industry Median: 6.33 vs EWCZ: 9.82

European Wax Center ROE % Historical Data

The historical data trend for European Wax Center'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.

European Wax Center ROE % Chart

European Wax Center Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
-7.76 -6.80 2.78 5.63 11.00

European Wax Center Quarterly Data
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 4.82 -2.36 16.62 11.82 10.88

Competitive Comparison of European Wax Center's ROE %

For the Household & Personal Products subindustry, European Wax Center'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.


European Wax Center's ROE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, European Wax Center's ROE % distribution charts can be found below:

* The bar in red indicates where European Wax Center's ROE % falls into.



European Wax Center ROE % Calculation

European Wax Center'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 )
=8.931/( (79+83.342)/ 2 )
=8.931/81.171
=11.00 %

European Wax Center'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 )
=9.944/( (99.404+83.342)/ 2 )
=9.944/91.373
=10.88 %

* 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.


European Wax Center  (NAS:EWCZ) 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
=9.944/91.373
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(9.944 / 225.3)*(225.3 / 745.054)*(745.054 / 91.373)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.41 %*0.3024*8.154
=ROA %*Equity Multiplier
=1.33 %*8.154
=10.88 %

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
=9.944/91.373
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (9.944 / 23.236) * (23.236 / 51.004) * (51.004 / 225.3) * (225.3 / 745.054) * (745.054 / 91.373)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.428 * 0.4556 * 22.64 % * 0.3024 * 8.154
=10.88 %

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.


European Wax Center ROE % Related Terms

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


European Wax Center (European Wax Center) Business Description

Traded in Other Exchanges
N/A
Address
5830 Granite Parkway, 3rd Floor, Plano, TX, USA, 75024
European Wax Center Inc is a franchisor and operator of OOH waxing services. Its product sales consist of revenue earned from sales of proprietary wax.
Executives
Andrea Lyn Wasserman officer: Chief Commercial Officer C/O EUROPEAN WAX CENTER, INC., 5830 GRANITE PARKWAY, 3RD FLOOR, PLANO TX 75024
Stacie Shirley officer: CFO TUESDAY MORNING CORPORATION, 6250 LBJ FREEWAY, DALLAS TX 75240
Julie Hauser-blanner officer: SVP Ops, Field Tr. & Ind. Eng. C/O EUROPEAN WAX CENTER, INC., 5830 GRANITE PARKWAY, 3RD FLOOR, PLANO TX 75024
Ewc Holdings, Inc. 10 percent owner 15511 FISHER ISLAND DRIVE, FISHER ISLAND FL 37495
General Atlantic Partners Aiv-1 A, L.p. director, 10 percent owner 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Gapco Aiv Holdings, L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Ga Aiv-1 B Interholdco (ew), L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Genpar (ew), L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Partners Aiv (ew), L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Gapco Aiv Interholdco (ew), L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Partners Aiv-1 B, L.p. director, 10 percent owner 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Gap Coinvestments V, Llc director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic (spv) Gp, Llc director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic, L.p. director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Gap Coinvestments Iii, Llc director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055