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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Veritex Holdings's annualized net income for the quarter that ended in Mar. 2024 was $96.6 Mil. Veritex Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $1,534.9 Mil. Therefore, Veritex Holdings's annualized ROE % for the quarter that ended in Mar. 2024 was 6.30%.
The historical rank and industry rank for Veritex Holdings's ROE % or its related term are showing as below:
During the past 13 years, Veritex Holdings's highest ROE % was 11.08%. The lowest was 4.16%. And the median was 7.22%.
The historical data trend for Veritex 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.
Veritex Holdings Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
ROE % | Get a 7-Day Free Trial | 10.54 | 6.17 | 11.08 | 10.58 | 7.26 |
Veritex Holdings Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
ROE % | Get a 7-Day Free Trial | 10.44 | 9.04 | 8.75 | 0.93 | 6.30 |
For the Banks - Regional subindustry, Veritex 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.
For the Banks industry and Financial Services sector, Veritex Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Veritex Holdings's ROE % falls into.
Veritex 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 ) |
= | 108.261 | / | ( (1449.773 | + | 1531.323) | / 2 ) | |
= | 108.261 | / | 1490.548 | ||||
= | 7.26 % |
Veritex Holdings's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as
ROE % | = | Net Income (Q: Mar. 2024 ) | / | ( (Total Stockholders Equity (Q: Dec. 2023 ) | + | Total Stockholders Equity (Q: Mar. 2024 )) | / count ) |
= | 96.624 | / | ( (1531.323 | + | 1538.515) | / 2 ) | |
= | 96.624 | / | 1534.919 | ||||
= | 6.30 % |
* 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 (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.
Veritex Holdings (NAS:VBTX) 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: Mar. 2024 ) | ||||
= | Net Income | / | Total Stockholders Equity | ||
= | 96.624 | / | 1534.919 | ||
= | (Net Income / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (96.624 / 397.872) | * | (397.872 / 12551.3665) | * | (12551.3665 / 1534.919) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 24.29 % | * | 0.0317 | * | 8.1772 |
= | ROA % | * | Equity Multiplier | ||
= | 0.77 % | * | 8.1772 | ||
= | 6.30 % |
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: Mar. 2024 ) | ||||||
= | Net Income | / | Total Stockholders Equity | ||||
= | 96.624 | / | 1534.919 | ||||
= | (Net Income / Pre-Tax Income) | * | (Pre-Tax Income / Revenue) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (96.624 / 125.572) | * | (125.572 / 397.872) | * | (397.872 / 12551.3665) | * | (12551.3665 / 1534.919) |
= | Tax Burden | * | Pretax Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 0.7695 | * | 31.56 % | * | 0.0317 | * | 8.1772 |
= | 6.30 % |
Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 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 Veritex Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gregory B Morrison | director | 8214 WESTCHESTER DRIVE, SUITE 400, DALLAS TX 75225 |
Martin Dominic Karaba | officer: Chief Banking Officer | 1010 GRAND BLVD, KANSAS CITY MO 64106 |
Terry Earley | officer: Chief Financial Officer | C/O CRESCENT FINANCIAL BANCSHARES, INC., 1005 HIGH HOUSE ROAD, CARY NC 27513 |
Fallon William | director | 8214 WESTCHESTER DRIVE, SUITE 800, DALLAS TX 75225 |
Gordon Huddleston | director | 8214 WESTCHESTER DRIVE, SUITE 400, DALLAS TX 75225 |
Pat S Bolin | director | 5950 BERKSHIRE LANE, SUITE 1100, DALLAS TX 75225 |
Cara Mcdaniel | officer: Chief Talent Officer | 8214 WESTCHESTER DRIVE, DALLAS TX 75225 |
John Sughrue | director | 1807 ROSS AVENUE, SUITE 250, DALLAS TX 75201 |
Phil Donnelly | officer: SEVP, General Counsel | 8214 WESTCHESTER DR. SUITE 800, DALLAS TX 75225 |
Michael Clayton Riebe | officer: Chief Credit Officer | 8214 WESTCHESTER DRIVE SUITE 400, DALLAS TX 75225 |
Holland C Malcolm Iii | director, officer: Chairman, CEO, President | 8214 WESTCHESTER DRIVE, SUITE 400, DALLAS TX 75225 |
Arcilia Acosta | director | LEGACYTEXAS FINANCIAL GROUP, INC., 5851 LEGACY CIRCLE, PLANO TX 75024 |
Jim Recer | officer: Chief Banking Officer | 8214 WESTCHESTER DRIVE, DALLAS TX 75225 |
Manuel J Mehos | director | COASTAL BANCORP INC, 5718 WESTHEIMER SUITE 600, HOUSTON TX 77057 |
William Don Ellis | director | 4000 GREENBRIAR, HOUSTON TX 77098 |
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