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.

Papa John's International PZZA Return on equity

Discontinued — last reported Q4 '15

Return on equity at other companies

BJ's RestaurantsBJRI

11.9%—

Shake ShackSHAK

9%+6.3pp

Yum China HoldingsYUMC

16.9%+1.1pp

Wendy'sWEN

120.9%+30.5pp

Restaurant Brands InternationalQSR

37.9%-6.1pp

Lamb WestonLW

17.4%-4.3pp

Other financials

Income statement

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Revenue$478.6M-7.7%

Gross profit$137.7M-9.3%

Operating income$20.8M-13.4%

Net income$7.3M-21.3%

EPS (diluted)$0.21-22.2%

Balance sheet

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Cash & equivalents$39.0M-11.3%

Total debt$952.6M-3.2%

Total equity-$449.1M-4.0%

Total assets$831.9M-7.4%

Cash flow

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Operating cash flow$7.2M-76.9%

CapEx$13.5M+10.0%

Free cash flow-$6.2M-133%

Valuation

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Market cap$1.19B-26.9%

Enterprise value$2.1B-18.1%

P/E41.5×+20.7×

P/S0.6×-0.2×

Profitability

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Gross margin28.8%+0.3pp

Operating margin4.3%-2.9pp

Net margin1.4%-2.4pp

FCF margin1.8%—

Returns & leverage

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Debt / equity33.6×—

Current ratio0.8×0.0×

Where this comes from

Calculated from Papa John's International’s reported figures.

net income/total stockholders equity=131.1%

Based on trailing twelve months.

The official record: Papa John's International’s 10-K, filed February 27, 2018, 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.