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KVUE (Kenvue) ROE % : 2.23% (As of Jun. 2024)


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What is Kenvue ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Kenvue's annualized net income for the quarter that ended in Jun. 2024 was $232 Mil. Kenvue's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $10,400 Mil. Therefore, Kenvue's annualized ROE % for the quarter that ended in Jun. 2024 was 2.23%.

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

KVUE' s ROE % Range Over the Past 10 Years
Min: -4.79   Med: 10.45   Max: 10.72
Current: 10.37

During the past 5 years, Kenvue's highest ROE % was 10.72%. The lowest was -4.79%. And the median was 10.45%.

KVUE's ROE % is ranked better than
64.02% of 1848 companies
in the Consumer Packaged Goods industry
Industry Median: 7.01 vs KVUE: 10.37

Kenvue ROE % Historical Data

The historical data trend for Kenvue'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.

Kenvue ROE % Chart

Kenvue Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
- -4.79 10.72 10.23 10.67

Kenvue Quarterly Data
Dec19 Dec20 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 10.98 15.98 11.83 10.85 2.23

Competitive Comparison of Kenvue's ROE %

For the Household & Personal Products subindustry, Kenvue'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.


Kenvue's ROE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Kenvue's ROE % distribution charts can be found below:

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



Kenvue ROE % Calculation

Kenvue'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 )
=1664/( (19970+11211)/ 2 )
=1664/15590.5
=10.67 %

Kenvue's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=232/( (10621+10178)/ 2 )
=232/10399.5
=2.23 %

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


Kenvue  (NYSE:KVUE) 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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=232/10399.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(232 / 16000)*(16000 / 26863)*(26863 / 10399.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.45 %*0.5956*2.5831
=ROA %*Equity Multiplier
=0.86 %*2.5831
=2.23 %

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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=232/10399.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (232 / 260) * (260 / 2856) * (2856 / 16000) * (16000 / 26863) * (26863 / 10399.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8923 * 0.091 * 17.85 % * 0.5956 * 2.5831
=2.23 %

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


Kenvue ROE % Related Terms

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


Kenvue Business Description

Traded in Other Exchanges
Address
199 Grandview Road, Skillman, NJ, USA, 08558
Kenvue is the world's largest pure-play consumer health company by sales, generating $15 billion in annual revenue. Formerly known as Johnson & Johnson's consumer segment, Kenvue spun off and went public in May 2023. It operates in a variety of silos within consumer health, such as cough, cold and allergy care, pain management, face and body care, and oral care, as well as women's health. Its portfolio includes a wide array of some of the most well-known brands in the space, including Tylenol, Listerine, Johnson's, Aveeno, and Neutrogena. Despite playing in a fragmented industry with intense competition and ever-changing consumer preferences, many of Kenvue's brands are the global leader in their respective segment thanks to their strong brand power.
Executives
Allison Richard E Jr director 30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Seemantini Godbole director 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Bing Xie officer: Group President, Asia Pacific 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Donna Lorenson officer: Chief Corp Affairs Officer 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Matthew Orlando officer: General Counsel 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Luani Alvarado officer: Chief People Officer 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Jan Meurer officer: Chief Growth Officer 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Carlton Lawson officer: Group President, EMEA 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Caroline Tillett officer: Chief Scientific Officer 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Bernardo Tavares officer: Chief Tech & Data Officer 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Tamara Franklin director 107 STONE CLIFF ROAD, PRINCETON NJ 08540
Betsy D Holden director DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Kathy Widmer officer: Group President, NALA C/O ELIZABETH ARDEN, INC., 2400 S.W. 145 AVENUE, MIRAMAR FL 33027
Michael E Sneed director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Joseph J Wolk director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933