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USFD (US Foods Holding) ROE % : 16.10% (As of Jun. 2024)


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What is US Foods Holding ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. US Foods Holding's annualized net income for the quarter that ended in Jun. 2024 was $792 Mil. US Foods Holding's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $4,918 Mil. Therefore, US Foods Holding's annualized ROE % for the quarter that ended in Jun. 2024 was 16.10%.

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

USFD' s ROE % Range Over the Past 10 Years
Min: -5.83   Med: 9.56   Max: 16.79
Current: 10.93

During the past 12 years, US Foods Holding's highest ROE % was 16.79%. The lowest was -5.83%. And the median was 9.56%.

USFD's ROE % is ranked better than
52% of 300 companies
in the Retail - Defensive industry
Industry Median: 10.5 vs USFD: 10.93

US Foods Holding ROE % Historical Data

The historical data trend for US Foods Holding'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.

US Foods Holding ROE % Chart

US Foods Holding 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 11.10 -5.83 3.94 6.05 10.95

US Foods Holding Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.90 8.18 12.46 6.85 16.10

Competitive Comparison of US Foods Holding's ROE %

For the Food Distribution subindustry, US Foods Holding'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.


US Foods Holding's ROE % Distribution in the Retail - Defensive Industry

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

* The bar in red indicates where US Foods Holding's ROE % falls into.



US Foods Holding ROE % Calculation

US Foods Holding'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 )
=506/( (4495+4749)/ 2 )
=506/4622
=10.95 %

US Foods Holding'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 )
=792/( (4825+5011)/ 2 )
=792/4918
=16.10 %

* 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.


US Foods Holding  (NYSE:USFD) 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
=792/4918
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(792 / 38836)*(38836 / 13546.5)*(13546.5 / 4918)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.04 %*2.8669*2.7545
=ROA %*Equity Multiplier
=5.85 %*2.7545
=16.10 %

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
=792/4918
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (792 / 1076) * (1076 / 1408) * (1408 / 38836) * (38836 / 13546.5) * (13546.5 / 4918)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7361 * 0.7642 * 3.63 % * 2.8669 * 2.7545
=16.10 %

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.


US Foods Holding ROE % Related Terms

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


US Foods Holding Business Description

Traded in Other Exchanges
Address
9399 West Higgins Road, Suite 100, Rosemont, IL, USA, 60018
US Foods Holding Corp is the U.S. food service distributor. us Foods distributes food and nonfood products to the healthcare and hospitality industries, restaurants, and education, government facilities, and grocers. In addition to its delivery business, the firm has 80 cash-and- carry stores under the Chef'Store banner. The company generates majority of the revenue from Meats and seafood products.
Executives
Dirk J. Locascio officer: Chief Financial Officer C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., ROSEMONT IL 60018
David A Rickard officer: See Remarks C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
Scott D. Ferguson director 250 WEST 55TH STREET, 34TH FLOOR, NEW YORK NY 10019
Poe David L Jr officer: EVP, Chief Merchant 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Martha Ha officer: EVP, General Counsel 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
James D Sturgell officer: EVP, Chief Commercial Officer 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Randy J Taylor officer: EVP, Field Operations 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Andrew E. Iacobucci officer: Chief Merchandising Officer C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., ROSEMONT IL 60018
Steven Guberman officer: Chief Merchandising Officer C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
Kkr Group Co. Inc. 10 percent owner 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Fresh Holdings L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Group Partnership L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Sunil Gupta director C/O US FOODS HOLDING CORP., 9399 W HIGGINS RD, SUITE 100, ROSEMONT IL 60018
Jay Kvasnicka officer: See Remarks C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
David E Flitman officer: Chief Executive Officer C/O NALCO COMPANY, 1601 WEST DIEHL ROAD, NAPERVILLE IL 60563