GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » PROG Holdings Inc (NYSE:PRG) » Definitions » ROE %

PRG (PROG Holdings) ROE % : 55.39% (As of Sep. 2024)


View and export this data going back to 1984. Start your Free Trial

What is PROG Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. PROG Holdings's annualized net income for the quarter that ended in Sep. 2024 was $336 Mil. PROG Holdings's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $606 Mil. Therefore, PROG Holdings's annualized ROE % for the quarter that ended in Sep. 2024 was 55.39%.

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

PRG' s ROE % Range Over the Past 10 Years
Min: -4.51   Med: 10.87   Max: 29.25
Current: 26.49

During the past 13 years, PROG Holdings's highest ROE % was 29.25%. The lowest was -4.51%. And the median was 10.87%.

PRG's ROE % is ranked better than
87.56% of 1045 companies
in the Business Services industry
Industry Median: 8.24 vs PRG: 26.49

PROG Holdings ROE % Historical Data

The historical data trend for PROG 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.

PROG Holdings ROE % Chart

PROG Holdings 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 1.80 -4.51 29.25 15.80 23.90

PROG Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 23.50 12.49 14.94 23.15 55.39

Competitive Comparison of PROG Holdings's ROE %

For the Rental & Leasing Services subindustry, PROG 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.


PROG Holdings's ROE % Distribution in the Business Services Industry

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

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



PROG Holdings ROE % Calculation

PROG Holdings'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 )
=138.838/( (570.461+591.331)/ 2 )
=138.838/580.896
=23.90 %

PROG Holdings's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=335.848/( (581.853+630.807)/ 2 )
=335.848/606.33
=55.39 %

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


PROG Holdings  (NYSE:PRG) 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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=335.848/606.33
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(335.848 / 2424.58)*(2424.58 / 1453.5235)*(1453.5235 / 606.33)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.85 %*1.6681*2.3972
=ROA %*Equity Multiplier
=23.1 %*2.3972
=55.39 %

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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=335.848/606.33
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (335.848 / 167.388) * (167.388 / 386.608) * (386.608 / 2424.58) * (2424.58 / 1453.5235) * (1453.5235 / 606.33)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 2.0064 * 0.433 * 15.95 % * 1.6681 * 2.3972
=55.39 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 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.


PROG Holdings ROE % Related Terms

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


PROG Holdings Business Description

Traded in Other Exchanges
Address
256 West Data Drive, Draper, UT, USA, 84020-2315
PROG Holdings Inc is a financial technology holding company that provides transparent and competitive payment options to consumers. The Company has two reportable segments: (i) Progressive Leasing, an in-store, app-based, and e-commerce point-of-sale lease-to-own solutions provider; and (ii) Vive Financial (Vive), an omnichannel provider of second-look revolving credit products. The majority of the revenue of the company is earned through the progressive leasing segment.
Executives
Michael Todd King officer: Chief Legal and Compliance Off 256 WEST DATA DRIVE, DRAPER UT 84020
Thomas Eugene Vin Iv officer: General Counsel and Corp Sec 632 NORTH TARA COURT, WHICHITA KS 67206
Brian Garner officer: Chief Financial Officer 256 WEST DATA DR, DRAPER UT 84020
Curtis Linn Doman director, officer: Chief Innovation Officer-PROG 256 DATA DR, DRAPER UT 84020
Steven A Michaels director, officer: CEO 256 DATA DR, DRAPER UT 84020
Ramon Michael Martinez director 256 WEST DATA DRIVE, DRAPER UT 84020
Caroline Sio-chin Sheu director 256 WEST DATA DRIVE, DRAPER UT 84020
Douglas C Curling director 1000 ALDERMAN DRIVE, ALPHARETTA GA 30005
Ray M Robinson director 1170 PEACHTREE STREET NE, SUITE 2300, ATLANTA GA 30309
Kathy T Betty director 309 E. PACES FERRY ROAD, ATLANTA GA 30305
Cynthia N Day director 75 PIEDMONT AVE, ATLANTA GA 30303
James P. Smith director 256 WEST DATA DRIVE, DRAPER UT 84020
George M Sewell officer: Principal Acct Off, VP Fin Rep 256 WEST DATA DR, DRAPER UT 84020
Blake Wakefield officer: President, Chief Revenue Off 256 WEST DATA DR, DRAPER UT 84020
Marvin A Fentress officer: General Counsel, Corp Sec 256 WEST DATA DR, DRAPER UT 84020