What does return on equity mean?

Trailing-twelve-month net income divided by average shareholders' equity (average of the start and end of the trailing-twelve-month window). Measures the profit generated on each dollar of shareholder capital.

Herbalife HLF Return on equity

Discontinued — last reported Q3 '17

Return on equity at other companies

SMP

The Simply Good Foods CompanySMPL

8.2%-0.9pp

Celsius Holdings, Inc.CELH

20.5%—

CloroxCLX

249.6%+147pp

Archer Daniels MidlandADM

4.8%—

The Kraft Heinz CompanyKHC

-9.7%-12.5pp

United Natural FoodsUNFI

-2.4%-0.7pp

Other financials

Income statement

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Revenue$1.3B+7.8%

Gross profit$1.0B+7.3%

Operating income$138.4M+12.7%

Net income$61.9M+22.8%

EPS (diluted)$0.57+16.3%

Balance sheet

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Cash & equivalents$451.2M+37.0%

Total debt$2.2B-9.1%

Total equity-$441.5M+40.0%

Total assets$2.9B+7.1%

Cash flow

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Operating cash flow$113.8M+56,800%

CapEx$10.9M-40.4%

Free cash flow$102.9M+669%

Valuation

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Market cap$1.29B+74.0%

Enterprise value$3.02B+10.4%

P/E5.4×+2.7×

P/S0.3×+0.1×

Profitability

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Gross margin77.8%-0.3pp

Operating margin9.7%+0.9pp

Net margin4.7%-1.0pp

FCF margin7.3%+4.0pp

Returns & leverage

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Debt / equity10.4×—

Current ratio1.2×+0.3×

Where this comes from

Calculated from Herbalife’s reported figures.

net income/total stockholders equity=219.8%

Based on trailing twelve months.

The official record: Herbalife’s 10-Q, filed November 2, 2017, on SEC EDGAR. View the filing →

Questions, answered.

What does return on equity mean?: Trailing-twelve-month net income divided by average shareholders' equity (average of the start and end of the trailing-twelve-month window). Measures the profit generated on each dollar of shareholder capital.