Safeway (FRA:SWY) ROE % : 0.70% (As of Sep. 2014)

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What is Safeway ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Safeway's annualized net income for the quarter that ended in Sep. 2014 was €29 Mil. Safeway's average Total Stockholders Equity over the quarter that ended in Sep. 2014 was €4,204 Mil. Therefore, Safeway's annualized ROE % for the quarter that ended in Sep. 2014 was 0.70%.

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

FRA:SWY' s ROE % Range Over the Past 10 Years
Min: -18.71 Med: 15.41 Max: 80.42
Current: 64.25

During the past 13 years, Safeway's highest ROE % was 80.42%. The lowest was -18.71%. And the median was 15.41%.

FRA:SWY's ROE % is not ranked
in the Retail - Defensive industry.
Industry Median: 9.67 vs FRA:SWY: 64.25

Safeway ROE % Historical Data

The historical data trend for Safeway'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.

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Safeway ROE % Chart

Safeway Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROE %

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-17.89

12.44

11.91

18.07

79.26

Safeway Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
ROE %	Get a 7-Day Free Trial															8.20	291.45	-6.74	6.84	0.70

Competitive Comparison of Safeway's ROE %

For the Grocery Stores subindustry, Safeway'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.

Safeway's ROE % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Safeway's ROE % distribution charts can be found below:

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

Safeway ROE % Calculation

Safeway's annualized ROE % for the fiscal year that ended in Dec. 2013 is calculated as

ROE %	=	Net Income (A: Dec. 2013 )	/	( (Total Stockholders Equity (A: Dec. 2012 )	+	Total Stockholders Equity (A: Dec. 2013 ))	/ count )
	=	2560.475	/	( (2212.619	+	4248.235)	/ 2 )
	=	2560.475	/	3230.427
	=	79.26 %

Safeway's annualized ROE % for the quarter that ended in Sep. 2014 is calculated as

ROE %	=	Net Income (Q: Sep. 2014 )	/	( (Total Stockholders Equity (Q: Jun. 2014 )	+	Total Stockholders Equity (Q: Sep. 2014 ))	/ count )
	=	29.488	/	( (4103.494	+	4304.938)	/ 2 )
	=	29.488	/	4204.216
	=	0.70 %

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. 2014) net income data. ROE % is displayed in the 30-year financial page.

Safeway (FRA:SWY) 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. 2014 )
=	Net Income	/	Total Stockholders Equity
=	29.488	/	4204.216
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(29.488 / 25787.72)	*	(25787.72 / 10011.4755)	*	(10011.4755 / 4204.216)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.11 %	*	2.5758	*	2.3813
=	ROA %	*	Equity Multiplier
=	0.28 %	*	2.3813
=	0.70 %

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. 2014 )
=	Net Income	/	Total Stockholders Equity
=	29.488	/	4204.216
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(29.488 / -100.26)	*	(-100.26 / 292.396)	*	(292.396 / 25787.72)	*	(25787.72 / 10011.4755)	*	(10011.4755 / 4204.216)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	-0.2941	*	-0.3429	*	1.13 %	*	2.5758	*	2.3813
=	0.70 %

Note: The net income data used here is four times the quarterly (Sep. 2014) net income data. The Revenue data used here is four times the quarterly (Sep. 2014) 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.

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.

Safeway ROE % Related Terms

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Safeway (FRA:SWY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Safeway Inc (FRA:SWY) » Definitions » ROE %

Comparable Companies

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Address

Website

http://www.safeway.com

Safeway Inc was incorporated in the state of Delaware in July 1986 as SSI Holdings Corporation and, thereafter, its name was changed to Safeway Stores, Incorporated. In February 1990, the Company changed its name to Safeway Inc. The Company is a food and drug retailers in the United States, with 1,335 stores at year-end 2013. The Company's U.S. retail operations are located principally in California, Hawaii, Oregon, Washington, Alaska, Colorado, Arizona, Texas and the Mid-Atlantic region. The Company also has a network of distribution, manufacturing and food-processing facilities. The Company retail business operates into seven geographic retail operating segments; Denver, Eastern, Northern California, Phoenix, Northwest, Texas and Southern California. In all geographical retail operating segments, it operates one store format, where each store offers the same general mix of products with similar pricing to similar categories of customers. The Company does not operate supercenters, warehouse formats, combination clothing/grocery stores or discount stores. It owns and operates GroceryWorks.com Operating Company, LLC ("GroceryWorks"), an online grocery channel doing business under the names Safeway.com and Vons.com. Safeway's stores provide grocery items tailored to local preferences. Its stores offer a selection of food and general merchandise and feature a variety of specialty departments such as bakery, delicatessen, floral and pharmacy. In addition, its stores offer Starbucks coffee shops and adjacent fuel centers. The Company also owns more than 300 other trademarks registered and/or pending in the United States Patent and Trademark Office and other jurisdictions, including trademarks for its product and services such as Safeway, Safeway SELECT, Rancher's Reserve, O Organics, Lucerne, Primo Taglio, Eating Right, mom to mom, waterfront BISTRO, Bright Green, Pantry Essentials, Open Nature, Refreshe, Snack Artist, Signature CafÃ©, Priority, just for U, My Simple Nutrition, Ingredients for Life, and other trademarks such as Pak'N Save Foods, Vons, Pavilions, Randalls, Tom Thumb, and Carrs Quality Centers. Blackhawk, a subsidiary of Safeway, provides third-party gift cards, prepaid cards, telecom cards and sports and entertainment cards to a group of top North American retailers for sale to retail customers. The competitive factors that affect the Company's business are location, quality, price, condition of assets, marketing and promotional strategies, service and consumer loyalty to other brands and stores. It faces intense competition from traditional grocery retailers, non-traditional competitors such as supercenters and club stores, as well as from specialty supermarkets, drug stores, dollar stores, convenience stores and restaurants. The Company's compliance with the federal, state, local and foreign laws and regulations have been adopted regulating the discharge of materials into the environment or otherwise related to the p

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