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Tree House Education & Accessories (BOM:533540) ROE % : -2.40% (As of Mar. 2024)


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What is Tree House Education & Accessories ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tree House Education & Accessories's annualized net income for the quarter that ended in Mar. 2024 was ₹-50.00 Mil. Tree House Education & Accessories's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was ₹2,082.10 Mil. Therefore, Tree House Education & Accessories's annualized ROE % for the quarter that ended in Mar. 2024 was -2.40%.

The historical rank and industry rank for Tree House Education & Accessories's ROE % or its related term are showing as below:

BOM:533540' s ROE % Range Over the Past 10 Years
Min: -28.42   Med: -10.15   Max: 11.46
Current: -1.8

During the past 13 years, Tree House Education & Accessories's highest ROE % was 11.46%. The lowest was -28.42%. And the median was -10.15%.

BOM:533540's ROE % is ranked worse than
72.48% of 258 companies
in the Education industry
Industry Median: 5.46 vs BOM:533540: -1.80

Tree House Education & Accessories ROE % Historical Data

The historical data trend for Tree House Education & Accessories'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.

Tree House Education & Accessories ROE % Chart

Tree House Education & Accessories Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.33 -13.21 -10.02 -19.06 -1.80

Tree House Education & Accessories Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROE % Get a 7-Day Free Trial 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 1.47 -1.57 -1.65 -1.58 -2.40

Competitive Comparison of Tree House Education & Accessories's ROE %

For the Education & Training Services subindustry, Tree House Education & Accessories'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.


Tree House Education & Accessories's ROE % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Tree House Education & Accessories's ROE % distribution charts can be found below:

* The bar in red indicates where Tree House Education & Accessories's ROE % falls into.



Tree House Education & Accessories ROE % Calculation

Tree House Education & Accessories's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=-37.8/( (2119.932+2082.1)/ 2 )
=-37.8/2101.016
=-1.80 %

Tree House Education & Accessories's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=-50/( (0+2082.1)/ 1 )
=-50/2082.1
=-2.40 %

* 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 (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Tree House Education & Accessories  (BOM:533540) 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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-50/2082.1
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-50 / 77.6)*(77.6 / 2128.1)*(2128.1 / 2082.1)
=Net Margin %*Asset Turnover*Equity Multiplier
=-64.43 %*0.0365*1.0221
=ROA %*Equity Multiplier
=-2.35 %*1.0221
=-2.40 %

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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-50/2082.1
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-50 / -10) * (-10 / -21.6) * (-21.6 / 77.6) * (77.6 / 2128.1) * (2128.1 / 2082.1)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 5 * 0.463 * -27.84 % * 0.0365 * 1.0221
=-2.40 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) 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.


Tree House Education & Accessories ROE % Related Terms

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Tree House Education & Accessories (BOM:533540) Business Description

Traded in Other Exchanges
Address
Dadabhai Road, 101, Sapphire Plaza, Opposite CNMS School, Vile Parle (West), Mumbai, MH, IND, 400056
Tree House Education & Accessories Ltd provides providing education and related services including leasing of education infrastructure services in India. The group offers pre-primary education services and Education support services. It has a curriculum designed in-house using a combination of Playway and Montessori methods. Apart from reading, writing, and arithmetic it also teaches life skills and value education. In addition, the group provides various activities including playing with toys, listening to music, socio-dramatic plays, creative crafts and festival celebrations. It operates playgroup, nursery, junior kindergarten (KG), senior KG, summer camp, teachers training course, hobby class and daycare services.

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