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Staples (Staples) ROE % : 6.52% (As of Jul. 2017)


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What is Staples ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Staples's annualized net income for the quarter that ended in Jul. 2017 was $220 Mil. Staples's average Total Stockholders Equity over the quarter that ended in Jul. 2017 was $3,374 Mil. Therefore, Staples's annualized ROE % for the quarter that ended in Jul. 2017 was 6.52%.

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

SPLS's ROE % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 5.925
* Ranked among companies with meaningful ROE % only.

Staples ROE % Historical Data

The historical data trend for Staples'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.

Staples ROE % Chart

Staples Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.21 10.11 2.36 7.10 -33.03

Staples Quarterly Data
Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 -61.01 15.55 -91.37 -92.51 6.52

Competitive Comparison of Staples's ROE %

For the Specialty Retail subindustry, Staples'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.


Staples's ROE % Distribution in the Retail - Cyclical Industry

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

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



Staples ROE % Calculation

Staples's annualized ROE % for the fiscal year that ended in Jan. 2017 is calculated as

ROE %=Net Income (A: Jan. 2017 )/( (Total Stockholders Equity (A: Jan. 2016 )+Total Stockholders Equity (A: Jan. 2017 ))/ count )
=-1497/( (5376+3688)/ 2 )
=-1497/4532
=-33.03 %

Staples's annualized ROE % for the quarter that ended in Jul. 2017 is calculated as

ROE %=Net Income (Q: Jul. 2017 )/( (Total Stockholders Equity (Q: Apr. 2017 )+Total Stockholders Equity (Q: Jul. 2017 ))/ count )
=220/( (3360+3387)/ 2 )
=220/3373.5
=6.52 %

* 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 (Jul. 2017) net income data. ROE % is displayed in the 30-year financial page.


Staples  (NAS:SPLS) 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: Jul. 2017 )
=Net Income/Total Stockholders Equity
=220/3373.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(220 / 15620)*(15620 / 7588)*(7588 / 3373.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.41 %*2.0585*2.2493
=ROA %*Equity Multiplier
=2.9 %*2.2493
=6.52 %

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: Jul. 2017 )
=Net Income/Total Stockholders Equity
=220/3373.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (220 / 408) * (408 / 424) * (424 / 15620) * (15620 / 7588) * (7588 / 3373.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5392 * 0.9623 * 2.71 % * 2.0585 * 2.2493
=6.52 %

Note: The net income data used here is four times the quarterly (Jul. 2017) net income data. The Revenue data used here is four times the quarterly (Jul. 2017) 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.


Staples ROE % Related Terms

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


Staples (Staples) Business Description

Traded in Other Exchanges
N/A
Address
Staples is an American retailer with online and delivery capabilities. Staples offers products in categories: technology, facilities and breakroom, furniture, safety, medical, copy and print, and Staples EasyTech services. Staples operates throughout North and South America, Europe, Asia, Australia, and New Zealand. The company divides its business into three segments: North American stores and online, North American commercial, and international operations. The product offering includes Staples, Quill, and other proprietary branded products. Staples' product price points are generally low.
Executives
Shira Goodman director, officer: CEO C/O CARMAX, 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
John F Lundgren director 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Deborah A Henretta director ONE RIVERFRONT PLAZA, CORNING NY 14831
Robert E Sulentic director C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Kunal Kamlani director 3333 BEVERLY ROAD, HOFFMAN ESTATES IL 60179
Christine T Komola officer: Chief Financial Officer 500 STAPLES DRIVE, FRAMINGHAM MA 01702
Drew G Faust director C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
Curtis F Feeny director C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Joseph Doody officer: Vice Chairman CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701
Carol Meyrowitz director TJX COMPANIES INC, 770 COCHITUATE RD, FRAMINGHAM MA 01701
Ronald Sargent director, officer: Chairman and CEO 1014 VINE STREET, CINCINNATI OH 45202
Demos Parneros officer: President, NA Stores & Online 483 BAY ST, 7TH FL NORTH TOWER, TORONTOON A1 999999999
Rowland Moriarty director 200 CLARENDON ST T33, BOSTON MA 02116
Raul Vazquez director 500 STAPLES DR., FRAMINGHAM MA 01702
Basil Anderson director

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