🧮 HII ROE Calculation
Understanding ROE
Return on Equity (ROE) measures how efficiently a company generates profits from shareholders' equity. For HII, the current ROE is 12.89%.
Why ROE Matters
Warren Buffett has called ROE one of his favorite metrics because it shows how well management uses shareholders' capital to generate returns. A company that consistently earns 15%+ ROE is typically a well-run business that creates value for shareholders.
ROE Benchmarks
Excellent: >20%
Exceptional returns on equity. Often indicates strong competitive advantages. Common in capital-light businesses.
Good: 15-20%
Above-average ROE. Buffett often looks for companies in this range or higher.
Average: 10-15%
Typical for most companies. Returns are reasonable but not exceptional.
Below Average: <10%
May indicate poor capital allocation or challenging business conditions.
The DuPont Analysis
ROE can be decomposed into three components using DuPont analysis:
This breakdown reveals whether high ROE comes from high profitability (good), efficient asset use (good), or high leverage (potentially risky).
ROE vs ROIC: Which is Better?
ROIC: 6.73% →
ROIC measures returns on ALL capital. It's more comprehensive and less affected by leverage. Often considered the better quality metric.
ROE: 12.89%
ROE only measures returns on equity. Can be inflated by high debt. If ROE >> ROIC, the company uses significant leverage.
Owner Earnings: $877.0M →
Shows actual cash available to owners. Use alongside ROE and ROIC for complete analysis.
Net Income: $661.0M →
The numerator in ROE. Understanding net income trends helps explain ROE changes over time.
What to Look For
- Consistency: Stable or improving ROE over 5-10 years
- ROE vs ROIC gap: A large gap suggests high leverage — be cautious
- Debt levels: High ROE + High Debt = Higher risk
- Retained earnings: High ROE + high retention = compounding machine
📊 Full HII Stock Report →
Intrinsic value, margin of safety, DCF valuation, and 250+ metrics.
🏆 HII ROIC →
Compare ROE to ROIC — the more comprehensive measure of capital efficiency.
💹 HII P/E Ratio →
Analyze valuation relative to earnings and understand market pricing.
👤 HII Owner Earnings →
Warren Buffett's preferred measure of true economic earnings available to owners.
💰 HII Net Income →
See the earnings that drive ROE calculations.
💵 HII Free Cash Flow →
Actual cash generation after capital expenditures.
Summary: HII Return on Equity
HUNTINGTON INGALLS INDUSTRIES, INC. (HII) has a ROE of 12.89%, which Zyberno classifies as good for a Industrials company — above the 12% threshold Zyberno applies to industrial companies where asset intensity moderates equity returns. For complete financial analysis, view the full HII stock report on Zyberno.
Frequently Asked Questions
What is HII's current ROE?
HUNTINGTON INGALLS INDUSTRIES, INC.'s Return on Equity (ROE) is 12.89%, measured against the 18% excellent threshold Zyberno applies to Industrials businesses. ROE measures the company's profitability relative to shareholders' equity.
Is HII's ROE good?
HUNTINGTON INGALLS INDUSTRIES, INC. (HII) has a ROE of 12.89%, which Zyberno classifies as good for a Industrials company — above the 12% threshold Zyberno applies to industrial companies where asset intensity moderates equity returns.
What is the difference between ROE and ROIC?
ROE measures returns on shareholder equity only, while ROIC measures returns on all invested capital (debt + equity). HII's ROE is 12.89% vs ROIC of 6.73%. ROE can be inflated by high debt, making ROIC often a more reliable quality metric.
Can high ROE be misleading?
Yes, high ROE can be misleading if achieved through high debt. HII's debt-to-equity ratio is 0.60x. Compare ROE to ROIC — if ROE is much higher than ROIC, the company uses significant leverage which adds risk.
📊 Full HII Stock Report →
See HII's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.
🏆 HII ROIC →
Compare to Return on Invested Capital — the most comprehensive measure of capital efficiency.
💹 HII P/E Ratio →
Analyze the price-to-earnings ratio and earnings yield as a valuation metric.
🎯 HII Earnings Surprise (SUE) →
See whether HII is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.
👤 HII Owner Earnings →
Warren Buffett's preferred measure of true economic earnings available to owners.
💰 HII Net Income →
See the bottom-line profit that drives return calculations.
📊 HII EPS →
Earnings per share — net income on a per-share basis.