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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Green Brick Partners's annualized net income for the quarter that ended in Sep. 2024 was $356 Mil. Green Brick Partners's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $1,480 Mil. Therefore, Green Brick Partners's annualized ROE % for the quarter that ended in Sep. 2024 was 24.08%.
The historical rank and industry rank for Green Brick Partners's ROE % or its related term are showing as below:
During the past 13 years, Green Brick Partners's highest ROE % was 52.53%. The lowest was 3.74%. And the median was 15.69%.
The historical data trend for Green Brick Partners'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.
Green Brick Partners Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
ROE % | Get a 7-Day Free Trial | 11.83 | 19.54 | 25.11 | 30.15 | 24.09 |
Green Brick Partners 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 | 23.86 | 22.94 | 24.83 | 29.86 | 24.08 |
For the Residential Construction subindustry, Green Brick Partners'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.
For the Homebuilding & Construction industry and Consumer Cyclical sector, Green Brick Partners's ROE % distribution charts can be found below:
* The bar in red indicates where Green Brick Partners's ROE % falls into.
Green Brick Partners'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 ) |
= | 284.626 | / | ( (1061.907 | + | 1300.704) | / 2 ) | |
= | 284.626 | / | 1181.3055 | ||||
= | 24.09 % |
Green Brick Partners'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 ) |
= | 356.444 | / | ( (1439.235 | + | 1520.737) | / 2 ) | |
= | 356.444 | / | 1479.986 | ||||
= | 24.08 % |
* 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.
Green Brick Partners (NYSE:GRBK) 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 | ||
= | 356.444 | / | 1479.986 | ||
= | (Net Income / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (356.444 / 2094.64) | * | (2094.64 / 2118.236) | * | (2118.236 / 1479.986) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 17.02 % | * | 0.9889 | * | 1.4313 |
= | ROA % | * | Equity Multiplier | ||
= | 16.83 % | * | 1.4313 | ||
= | 24.08 % |
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 | ||||||
= | 356.444 | / | 1479.986 | ||||||
= | (Net Income / Pre-Tax Income) | * | (Pre-Tax Income / Operating Income) | * | (Operating Income / Revenue) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (356.444 / 475.904) | * | (475.904 / 455.292) | * | (455.292 / 2094.64) | * | (2094.64 / 2118.236) | * | (2118.236 / 1479.986) |
= | Tax Burden | * | Interest Burden | * | Operating Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 0.749 | * | 1.0453 | * | 21.74 % | * | 0.9889 | * | 1.4313 |
= | 24.08 % |
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.
Thank you for viewing the detailed overview of Green Brick Partners's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
James R. Brickman | director, officer: Chief Executive Officer | 3131 HARVARD AVENUE, SUTE 103, DALLAS TX 75205 |
Kathleen Olsen | director | 4 BROOKSIDE DRIVE, PORT WASHINGTON NY 11050 |
Richard Arthur Costello | officer: Chief Financial Officer | 2805 DALLAS PARKWAY, SUITE 400, PLANO TX 75093 |
David Einhorn | director, 10 percent owner | 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017 |
Richard S Press | director | 101 BOGLE STREET, WESTON MA 02493 |
Jed Dolson | officer: See Remarks | 3131 HARVARD AVENUE, SUTE 103, DALLAS TX 75205 |
Dme Capital Management, Lp | director, 10 percent owner | 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017 |
Dme Advisors Gp, L.l.c. | director, 10 percent owner | 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017 |
Dme Advisors, Lp | director, 10 percent owner | 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017 |
Greenlight Capital Inc | director, 10 percent owner | 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017 |
Elizabeth Blake | director | BIOFUEL ENERGY CORP., 1600 BROADWAY SUITE 2200, DENVER CO 80202 |
Harry Brandler | director | 2 GRAND CENTRAL TOWER, 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017 |
Neal J Suit | officer: General Counsel & EVP | C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022 |
Lila A Murphy | director | 2000 S. COLORADO BLVD., SUITE 10200, DENVER CO 80222 |
John R Farris | director | P.O. BOX 309, FRANKFORT KY 40602-0309 |
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