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NVC International Holdings (HKSE:02222) ROE % : 14.91% (As of Dec. 2023)


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What is NVC International Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NVC International Holdings's annualized net income for the quarter that ended in Dec. 2023 was HK$542 Mil. NVC International Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was HK$3,632 Mil. Therefore, NVC International Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 14.91%.

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

HKSE:02222' s ROE % Range Over the Past 10 Years
Min: -10.1   Med: 0.92   Max: 110.21
Current: 7.75

During the past 13 years, NVC International Holdings's highest ROE % was 110.21%. The lowest was -10.10%. And the median was 0.92%.

HKSE:02222's ROE % is ranked better than
54.46% of 415 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 6.53 vs HKSE:02222: 7.75

NVC International Holdings ROE % Historical Data

The historical data trend for NVC International 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.

NVC International Holdings ROE % Chart

NVC International 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 110.21 -1.63 0.18 -2.05 7.62

NVC International Holdings 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 -3.45 -0.93 -3.22 0.46 14.91

Competitive Comparison of NVC International Holdings's ROE %

For the Furnishings, Fixtures & Appliances subindustry, NVC International 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.


NVC International Holdings's ROE % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, NVC International Holdings's ROE % distribution charts can be found below:

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



NVC International Holdings ROE % Calculation

NVC International 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 )
=278.911/( (3538.402+3778.155)/ 2 )
=278.911/3658.2785
=7.62 %

NVC International Holdings'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 )
=541.672/( (3485.873+3778.155)/ 2 )
=541.672/3632.014
=14.91 %

* 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.


NVC International Holdings  (HKSE:02222) 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
=541.672/3632.014
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(541.672 / 1826.618)*(1826.618 / 4439.021)*(4439.021 / 3632.014)
=Net Margin %*Asset Turnover*Equity Multiplier
=29.65 %*0.4115*1.2222
=ROA %*Equity Multiplier
=12.2 %*1.2222
=14.91 %

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
=541.672/3632.014
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (541.672 / 595.576) * (595.576 / -67.758) * (-67.758 / 1826.618) * (1826.618 / 4439.021) * (4439.021 / 3632.014)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9095 * -8.7898 * -3.71 % * 0.4115 * 1.2222
=14.91 %

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.


NVC International Holdings ROE % Related Terms

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


NVC International Holdings (HKSE:02222) Business Description

Traded in Other Exchanges
N/A
Address
Phase 3, Hong Kong Science Park, Unit 705, 7th Floor, Building 20E, Pak Shek Kok, Hong Kong, HKG
NVC International Holdings Ltd is engaged in the lighting industry. Its segment includes NVC brand lighting products - international market, Non-NVC brand lighting products - domestic market, and Non-NVC brand lighting products - international market It offers lighting solutions to hospitality, commercial, and corporate projects across varied industries sectors. The products offered by the company include LED Floodlights, LED Inground lights, LED Under canopy lighting, and LED Linear lighting among others. majority of the revenue of the company is generated from the United States.
Executives
Harbour Faith Enterprises Limited 2101 Beneficial owner
Chan Sin Wa Carrie 2201 Interest of corporation controlled by you
Gold Interact Investment Limited 2106 Person having a security interest in shares
Su Lixin 2101 Beneficial owner
Ye Yong
Canopy Capital Limited 2101 Beneficial owner
Harker Hall Capital Ltd. 2201 Interest of corporation controlled by you
Leap Gain Limited 2201 Interest of corporation controlled by you
Oneworld Legend Limited 2201 Interest of corporation controlled by you
Wang Keven Dun 2201 Interest of corporation controlled by you
Elec-tech International (hk) Co Ltd 2101 Beneficial owner
An Hui De Hao Run Da Dian Qi Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Su Lixin 2101 Beneficial owner
Zhao Yu
Cai Sheng You Xian Gong Si

NVC International Holdings (HKSE:02222) Headlines

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