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Genpact (Genpact) ROE %

: 54.73% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Genpact's annualized net income for the quarter that ended in Dec. 2023 was $1,165 Mil. Genpact's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $2,129 Mil. Therefore, Genpact's annualized ROE % for the quarter that ended in Dec. 2023 was 54.73%.

The historical rank and industry rank for Genpact's ROE % or its related term are showing as below:

G' s ROE % Range Over the Past 10 Years
Min: 14.74   Med: 19.48   Max: 31.75
Current: 31.75

During the past 13 years, Genpact's highest ROE % was 31.75%. The lowest was 14.74%. And the median was 19.48%.

G's ROE % is ranked better than
91.82% of 2641 companies
in the Software industry
Industry Median: 3.14 vs G: 31.75

Genpact ROE % Historical Data

The historical data trend for Genpact'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.

* Premium members only.

Genpact Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.71 17.50 19.80 18.98 30.99

Genpact Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.17 22.63 24.10 23.86 54.73

Competitive Comparison

For the Information Technology Services subindustry, Genpact'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.


Genpact ROE % Distribution

For the Software industry and Technology sector, Genpact's ROE % distribution charts can be found below:

* The bar in red indicates where Genpact's ROE % falls into.



Genpact ROE % Calculation

Genpact'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 )
=631.255/( (1826.158+2248.392)/ 2 )
=631.255/2037.275
=30.99 %

Genpact's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=1165.236/( (2009.453+2248.392)/ 2 )
=1165.236/2128.9225
=54.73 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Genpact  (NYSE:G) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=1165.236/2128.9225
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1165.236 / 4585.012)*(4585.012 / 4702.243)*(4702.243 / 2128.9225)
=Net Margin %*Asset Turnover*Equity Multiplier
=25.41 %*0.9751*2.2087
=ROA %*Equity Multiplier
=24.78 %*2.2087
=54.73 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=1165.236/2128.9225
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1165.236 / 633.896) * (633.896 / 650.456) * (650.456 / 4585.012) * (4585.012 / 4702.243) * (4702.243 / 2128.9225)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.8382 * 0.9745 * 14.19 % * 0.9751 * 2.2087
=54.73 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


Genpact ROE % Related Terms

Thank you for viewing the detailed overview of Genpact's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Genpact (Genpact) Business Description

Traded in Other Exchanges
Address
22 Victoria Street, Canon's Court, Hamilton, BMU, HM 12
Genpact Ltd is a provider of business process management services. Clients are industry verticals and operate in banking and financial services, insurance, capital markets, consumer product goods, life sciences, infrastructure, manufacturing and services, healthcare, and high-tech. Genpact's services include aftermarket, direct procurement, risk and compliance, human resources, IT, industrial solutions, collections, finance and accounting, and media services. Genpact's end market by revenue is India. The company is a General Electric spin-off, which is still a large source of revenue for Genpact.
Executives
Kathryn Vanpelt Stein officer: Senior Vice President 40 WEST 24TH STREET, APT 3N, NEW YORK NY 10010
N. V. Tyagarajan officer: Executive Vice President 825 EIGHTH AVENUE, NEW YORK NY 10019
Michael Hal Weiner officer: Chief Financial Officer C/O NGHC, 59 MAIDEN LANE, 38TH FLOOR, NEW YORK NY 10038
Donald J Klunk officer: Chief Accounting Officer 3585 GRAY FOX DR, CHALFONT PA 18914
Piyush Mehta officer: Senior VP , Human Resources 825 EIGHTH AVENUE, NEW YORK NY 10019
James C. Madden director 825 EIGHTH AVENUE, NEW YORK NY 10019
Cecelia Morken director 26025 MUREAU ROAD, CALABASAS CA 91302
Heather White officer: SVP & General Counsel 1155 AVENUE OF THE AMERICAS, 4TH FLOOR, NEW YORK X1 10036
Stacey Cartwright director 34 ROEDEAN CRESCENT, LONDON X0 SW15 5JU
Brian Mark Stevens director 25 HOOPER HILL RD., NEW BOSTON NH 03070
Ajay Agrawal director 105 ROBERT STREET, TORONTO A6 M5S 2K5
Tamara Franklin director 107 STONE CLIFF ROAD, PRINCETON NJ 08540
Balkrishan Kalra officer: Senior Vice President 5 MARION AVENUE, SHORT HILLS NJ 07078
Carol Lindstrom director 5994 SILVERADO TRAIL, NAPA CA 94558
Darren Saumur officer: Senior Vice President 125 DUPONT STREET, TORONTO A6 M5R 1V4