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Unit4 NV (FRA:UNT) ROE % : 6.65% (As of Dec. 2013)


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What is Unit4 NV ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Unit4 NV's annualized net income for the quarter that ended in Dec. 2013 was €16.6 Mil. Unit4 NV's average Total Stockholders Equity over the quarter that ended in Dec. 2013 was €249.3 Mil. Therefore, Unit4 NV's annualized ROE % for the quarter that ended in Dec. 2013 was 6.65%.

The historical rank and industry rank for Unit4 NV's ROE % or its related term are showing as below:

FRA:UNT' s ROE % Range Over the Past 10 Years
Min: 6.8   Med: 13.29   Max: 32.54
Current: 6.95

During the past 12 years, Unit4 NV's highest ROE % was 32.54%. The lowest was 6.80%. And the median was 13.29%.

FRA:UNT's ROE % is not ranked
in the Software industry.
Industry Median: 3.17 vs FRA:UNT: 6.95

Unit4 NV ROE % Historical Data

The historical data trend for Unit4 NV'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.

Unit4 NV ROE % Chart

Unit4 NV Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.14 13.81 10.77 10.24 6.65

Unit4 NV Semi-Annual Data
Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.14 13.81 10.77 10.24 6.65

Competitive Comparison of Unit4 NV's ROE %

For the Software - Application subindustry, Unit4 NV'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.


Unit4 NV's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, Unit4 NV's ROE % distribution charts can be found below:

* The bar in red indicates where Unit4 NV's ROE % falls into.



Unit4 NV ROE % Calculation

Unit4 NV's annualized ROE % for the fiscal year that ended in Dec. 2013 is calculated as

ROE %=Net Income (A: Dec. 2013 )/( (Total Stockholders Equity (A: Dec. 2012 )+Total Stockholders Equity (A: Dec. 2013 ))/ count )
=16.577/( (249.498+249.062)/ 2 )
=16.577/249.28
=6.65 %

Unit4 NV's annualized ROE % for the quarter that ended in Dec. 2013 is calculated as

ROE %=Net Income (Q: Dec. 2013 )/( (Total Stockholders Equity (Q: Dec. 2012 )+Total Stockholders Equity (Q: Dec. 2013 ))/ count )
=16.577/( (249.498+249.062)/ 2 )
=16.577/249.28
=6.65 %

* 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 one times the annual (Dec. 2013) net income data. ROE % is displayed in the 30-year financial page.


Unit4 NV  (FRA:UNT) 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. 2013 )
=Net Income/Total Stockholders Equity
=16.577/249.28
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(16.577 / 490.487)*(490.487 / 596.191)*(596.191 / 249.28)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.38 %*0.8227*2.3917
=ROA %*Equity Multiplier
=2.78 %*2.3917
=6.65 %

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. 2013 )
=Net Income/Total Stockholders Equity
=16.577/249.28
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (16.577 / 22.432) * (22.432 / 34.517) * (34.517 / 490.487) * (490.487 / 596.191) * (596.191 / 249.28)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.739 * 0.6499 * 7.04 % * 0.8227 * 2.3917
=6.65 %

Note: The net income data used here is one times the annual (Dec. 2013) net income data. The Revenue data used here is one times the annual (Dec. 2013) 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.


Unit4 NV ROE % Related Terms

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Unit4 NV (FRA:UNT) Business Description

Traded in Other Exchanges
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Address
Unit4 NV was founded on 1980. The Company is a cloud business software and services company that helps dynamic public sector and commercial services organizations to embrace change simply, quickly and cost effectively in a market sector that call 'Businesses Living IN Change' (BLINC). The Group incorporates a number of change embracing software brands, including UNIT4 Agresso, our flagship ERP suite for mid-sized services intensive organizations. The Company's UNIT4 Coda, best-of-class financial management software; and FinancialForce.com, the cloud enterprise applications company formed with investment from salesforce.com. Its software products and services are designed to meet the needs of an ever changing business. The Company has about 300 customers with about 80,000 active users and local installations in around 20 countries.

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