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Henderson Highome Trust (LSE:HHI) ROE % : 14.18% (As of Dec. 2023)


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What is Henderson Highome Trust ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Henderson Highome Trust's annualized net income for the quarter that ended in Dec. 2023 was £30.91 Mil. Henderson Highome Trust's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was £217.96 Mil. Therefore, Henderson Highome Trust's annualized ROE % for the quarter that ended in Dec. 2023 was 14.18%.

The historical rank and industry rank for Henderson Highome Trust's ROE % or its related term are showing as below:

LSE:HHI' s ROE % Range Over the Past 10 Years
Min: -14.6   Med: 8.31   Max: 22.87
Current: 9.88

During the past 13 years, Henderson Highome Trust's highest ROE % was 22.87%. The lowest was -14.60%. And the median was 8.31%.

LSE:HHI's ROE % is ranked better than
69.88% of 1700 companies
in the Asset Management industry
Industry Median: 4.46 vs LSE:HHI: 9.88

Henderson Highome Trust ROE % Historical Data

The historical data trend for Henderson Highome Trust'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.

Henderson Highome Trust ROE % Chart

Henderson Highome Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.87 -11.68 16.80 -4.89 9.81

Henderson Highome Trust Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 12.27 -16.37 6.91 5.58 14.18

Competitive Comparison of Henderson Highome Trust's ROE %

For the Asset Management subindustry, Henderson Highome Trust'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.


Henderson Highome Trust's ROE % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Henderson Highome Trust's ROE % distribution charts can be found below:

* The bar in red indicates where Henderson Highome Trust's ROE % falls into.



Henderson Highome Trust ROE % Calculation

Henderson Highome Trust'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 )
=21.42/( (214.277+222.342)/ 2 )
=21.42/218.3095
=9.81 %

Henderson Highome Trust'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 )
=30.912/( (213.571+222.342)/ 2 )
=30.912/217.9565
=14.18 %

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


Henderson Highome Trust  (LSE:HHI) 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
=30.912/217.9565
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(30.912 / 31.348)*(31.348 / 270.214)*(270.214 / 217.9565)
=Net Margin %*Asset Turnover*Equity Multiplier
=98.61 %*0.116*1.2398
=ROA %*Equity Multiplier
=11.44 %*1.2398
=14.18 %

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
=30.912/217.9565
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (30.912 / 30.89) * (30.89 / 31.348) * (31.348 / 270.214) * (270.214 / 217.9565)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1.0007 * 98.54 % * 0.116 * 1.2398
=14.18 %

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.

* 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.


Henderson Highome Trust ROE % Related Terms

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


Henderson Highome Trust (LSE:HHI) Business Description

Traded in Other Exchanges
Address
201 Bishopsgate, London, GBR, EC2M 3AE
Henderson High Income Trust PLC is a United Kingdom-based investment trust. The company's investment objective is to invest in a prudently diversified selection of both known and smaller companies to provide investors with a high dividend income stream while also maintaining the prospect of capital growth. To achieve this objective, the company invests substantially in ordinary shares of listed companies and the rest in fixed-interest stocks. Henderson's trust comprises securities in a variety of sectors, including financials, consumer goods, consumer services, fixed interest, telecommunications, utilities, healthcare, oil, and gas. The majority of its investments are based in the United Kingdom.

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