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Keystone Law Group (LSE:KEYS) ROE % : 43.02% (As of Jan. 2024)


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What is Keystone Law Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Keystone Law Group's annualized net income for the quarter that ended in Jan. 2024 was £7.63 Mil. Keystone Law Group's average Total Stockholders Equity over the quarter that ended in Jan. 2024 was £17.73 Mil. Therefore, Keystone Law Group's annualized ROE % for the quarter that ended in Jan. 2024 was 43.02%.

The historical rank and industry rank for Keystone Law Group's ROE % or its related term are showing as below:

LSE:KEYS' s ROE % Range Over the Past 10 Years
Min: 22.67   Med: 37.08   Max: 602.44
Current: 43.03

During the past 10 years, Keystone Law Group's highest ROE % was 602.44%. The lowest was 22.67%. And the median was 37.08%.

LSE:KEYS's ROE % is ranked better than
94.71% of 1040 companies
in the Business Services industry
Industry Median: 8.5 vs LSE:KEYS: 43.03

Keystone Law Group ROE % Historical Data

The historical data trend for Keystone Law 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.

Keystone Law Group ROE % Chart

Keystone Law Group Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.25 28.20 37.50 36.65 43.97

Keystone Law Group Semi-Annual Data
Jan15 Jan16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
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 36.52 37.83 41.14 42.16 43.02

Competitive Comparison of Keystone Law Group's ROE %

For the Specialty Business Services subindustry, Keystone Law 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.


Keystone Law Group's ROE % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Keystone Law Group's ROE % distribution charts can be found below:

* The bar in red indicates where Keystone Law Group's ROE % falls into.



Keystone Law Group ROE % Calculation

Keystone Law Group's annualized ROE % for the fiscal year that ended in Jan. 2024 is calculated as

ROE %=Net Income (A: Jan. 2024 )/( (Total Stockholders Equity (A: Jan. 2023 )+Total Stockholders Equity (A: Jan. 2024 ))/ count )
=7.65/( (17.859+16.94)/ 2 )
=7.65/17.3995
=43.97 %

Keystone Law Group's annualized ROE % for the quarter that ended in Jan. 2024 is calculated as

ROE %=Net Income (Q: Jan. 2024 )/( (Total Stockholders Equity (Q: Jul. 2023 )+Total Stockholders Equity (Q: Jan. 2024 ))/ count )
=7.628/( (18.526+16.94)/ 2 )
=7.628/17.733
=43.02 %

* 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 (Jan. 2024) net income data. ROE % is displayed in the 30-year financial page.


Keystone Law Group  (LSE:KEYS) 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: Jan. 2024 )
=Net Income/Total Stockholders Equity
=7.628/17.733
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(7.628 / 91.252)*(91.252 / 41.0185)*(41.0185 / 17.733)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.36 %*2.2247*2.3131
=ROA %*Equity Multiplier
=18.6 %*2.3131
=43.02 %

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: Jan. 2024 )
=Net Income/Total Stockholders Equity
=7.628/17.733
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (7.628 / 10.082) * (10.082 / 12.126) * (12.126 / 91.252) * (91.252 / 41.0185) * (41.0185 / 17.733)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7566 * 0.8314 * 13.29 % * 2.2247 * 2.3131
=43.02 %

Note: The net income data used here is two times the semi-annual (Jan. 2024) net income data. The Revenue data used here is two times the semi-annual (Jan. 2024) 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.


Keystone Law Group ROE % Related Terms

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Keystone Law Group (LSE:KEYS) Business Description

Traded in Other Exchanges
N/A
Address
48 Chancery Lane, London, GBR, WC2A 1JF
Keystone Law Group PLC is a law firm. The company provides legal services to a client base comprising of small and medium enterprises and private individuals. It offers conventional legal advice in the areas including property, commercial, corporate, employment, family, litigation, and private client. It derives revenue from rendering of services and other revenue. It serves sectors such as Aviation, Education, Financial Services, Food and Beverage, High-Net-Worth Family Office, Hotels, Hospitality and Leisure, In-House Legal, Life Sciences and Healthcare, Marine and Shipping, Media, Satellite, Space and Communications, and others.