Haleon Plc Return On Equity vs. Return On Asset

HLN Stock  USD 9.54  0.03  0.32%   
Based on the measurements of profitability obtained from Haleon Plc's financial statements, Haleon plc may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in February. Profitability indicators assess Haleon Plc's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.06316994
Current Value
0.0398
Quarterly Volatility
0.01533195
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Haleon Plc's Price To Sales Ratio is very stable compared to the past year. As of the 1st of January 2025, Price Sales Ratio is likely to grow to 3.22, while Days Sales Outstanding is likely to drop 41.48. At this time, Haleon Plc's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 1st of January 2025, Net Income From Continuing Ops is likely to grow to about 1.2 B, though Net Interest Income is likely to grow to (349.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.480.597
Significantly Down
Very volatile
Net Profit Margin0.0880.0928
Notably Down
Slightly volatile
Operating Profit Margin0.130.1766
Way Down
Slightly volatile
Pretax Profit Margin0.120.144
Significantly Down
Slightly volatile
Return On Assets0.02460.0308
Significantly Down
Slightly volatile
Return On Equity0.03980.0632
Way Down
Slightly volatile
For Haleon Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Haleon Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Haleon plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Haleon Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Haleon plc over time as well as its relative position and ranking within its peers.
  
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Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Haleon Plc. If investors know Haleon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Haleon Plc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.348
Dividend Share
0.062
Earnings Share
0.33
Revenue Per Share
2.446
Quarterly Revenue Growth
(0.01)
The market value of Haleon plc is measured differently than its book value, which is the value of Haleon that is recorded on the company's balance sheet. Investors also form their own opinion of Haleon Plc's value that differs from its market value or its book value, called intrinsic value, which is Haleon Plc's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Haleon Plc's market value can be influenced by many factors that don't directly affect Haleon Plc's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Haleon Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine if Haleon Plc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Haleon Plc's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Haleon plc Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Haleon Plc's current stock value. Our valuation model uses many indicators to compare Haleon Plc value to that of its competitors to determine the firm's financial worth.
Haleon plc is rated below average in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about  0.65  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Haleon plc is roughly  1.53 . At this time, Haleon Plc's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Haleon Plc's earnings, one of the primary drivers of an investment's value.

Haleon Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Haleon Plc

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0682
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Haleon Plc

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0445
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Haleon Return On Asset Comparison

Haleon Plc is currently under evaluation in return on asset category among its peers.

Haleon Plc Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Haleon Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Haleon Plc will eventually generate negative long term returns. The profitability progress is the general direction of Haleon Plc's change in net profit over the period of time. It can combine multiple indicators of Haleon Plc, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income765 M803.2 M
Net Interest Income-368 M-349.6 M
Interest Income34 M31.7 M
Operating IncomeB1.7 B
Net Income From Continuing Ops1.1 B1.2 B
Income Before Tax1.6 B1.6 B
Total Other Income Expense Net-368 M-349.6 M
Net Income Applicable To Common Shares1.2 B1.2 B
Net Income1.1 B1.2 B
Income Tax Expense517 M400.8 M
Change To Netincome615.2 M646 M
Net Income Per Share 0.11  0.09 
Income Quality 1.89  1.12 
Net Income Per E B T 0.64  0.79 

Haleon Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Haleon Plc. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Haleon Plc position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Haleon Plc's important profitability drivers and their relationship over time.
Return On Equity vs Profit