GURUFOCUS.COM » STOCK LIST » Technology » Software » Actual Experience PLC (LSE:ACT) » Definitions » ROE %

Actual Experience (LSE:ACT) ROE % : -128.37% (As of Mar. 2023)


View and export this data going back to 2014. Start your Free Trial

What is Actual Experience ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Actual Experience's annualized net income for the quarter that ended in Mar. 2023 was £-4.79 Mil. Actual Experience's average Total Stockholders Equity over the quarter that ended in Mar. 2023 was £3.73 Mil. Therefore, Actual Experience's annualized ROE % for the quarter that ended in Mar. 2023 was -128.37%.

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

LSE:ACT' s ROE % Range Over the Past 10 Years
Min: -144.14   Med: -56.36   Max: -23.56
Current: -107.59

During the past 12 years, Actual Experience's highest ROE % was -23.56%. The lowest was -144.14%. And the median was -56.36%.

LSE:ACT's ROE % is not ranked
in the Software industry.
Industry Median: 3.24 vs LSE:ACT: -107.59

Actual Experience ROE % Historical Data

The historical data trend for Actual Experience'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.

Actual Experience ROE % Chart

Actual Experience Annual Data
Trend Jul12 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -43.48 -51.14 -61.58 -83.33 -85.62

Actual Experience Semi-Annual Data
Mar13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23
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 -48.65 -69.38 -76.98 -102.53 -128.37

Competitive Comparison of Actual Experience's ROE %

For the Information Technology Services subindustry, Actual Experience'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.


Actual Experience's ROE % Distribution in the Software Industry

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

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



Actual Experience ROE % Calculation

Actual Experience's annualized ROE % for the fiscal year that ended in Sep. 2022 is calculated as

ROE %=Net Income (A: Sep. 2022 )/( (Total Stockholders Equity (A: Sep. 2021 )+Total Stockholders Equity (A: Sep. 2022 ))/ count )
=-5.274/( (8.836+3.483)/ 2 )
=-5.274/6.1595
=-85.62 %

Actual Experience's annualized ROE % for the quarter that ended in Mar. 2023 is calculated as

ROE %=Net Income (Q: Mar. 2023 )/( (Total Stockholders Equity (Q: Sep. 2022 )+Total Stockholders Equity (Q: Mar. 2023 ))/ count )
=-4.794/( (3.483+3.986)/ 2 )
=-4.794/3.7345
=-128.37 %

* 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 two times the semi-annual (Mar. 2023) net income data. ROE % is displayed in the 30-year financial page.


Actual Experience  (LSE:ACT) 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. 2023 )
=Net Income/Total Stockholders Equity
=-4.794/3.7345
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-4.794 / 0.45)*(0.45 / 5.012)*(5.012 / 3.7345)
=Net Margin %*Asset Turnover*Equity Multiplier
=-1065.33 %*0.0898*1.3421
=ROA %*Equity Multiplier
=-95.67 %*1.3421
=-128.37 %

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. 2023 )
=Net Income/Total Stockholders Equity
=-4.794/3.7345
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-4.794 / -5.04) * (-5.04 / -5.072) * (-5.072 / 0.45) * (0.45 / 5.012) * (5.012 / 3.7345)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9512 * 0.9937 * -1127.11 % * 0.0898 * 1.3421
=-128.37 %

Note: The net income data used here is two times the semi-annual (Mar. 2023) net income data. The Revenue data used here is two times the semi-annual (Mar. 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.


Actual Experience ROE % Related Terms

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


Actual Experience (LSE:ACT) Business Description

Traded in Other Exchanges
N/A
Address
Quay House, The Ambury, Bath, Somerset, GBR, BA1 1UA
Actual Experience PLC operates in the United Kingdom technology sector. Its analytics services aid companies that provide digital services. The company's main product is a cloud analytics platform that transforms the measurements of the digital products and services into a real-time digital voice of the customer quality scores. It fragments its services based on its end-user into the Actual Work, Actual Home, and Actual Work Web trademark products. Actual Work analyses infrastructure and application elements in each delivery path as a supplier in a digital supply chain. The company operates in the United Kingdom, and the United States of America of which it generates maximum revenue from the United States of America.

Actual Experience (LSE:ACT) Headlines

From GuruFocus

Enact Announces Quarterly Dividend

By Marketwired 08-15-2023

Enact Announces Quarterly Dividend

By sperokesalga sperokesalga 02-09-2023

Enact Receives Ratings Upgrade from Moody's

By sperokesalga sperokesalga 03-01-2023

Enact To Participate at the Bank of America 2023 Financial Services Conference

By Stock market mentor Stock market mentor 02-03-2023

Enact Receives Ratings Upgrade from S&P Global Ratings

By sperokesalga sperokesalga 02-16-2023

Enact Announces Quarterly Dividend

By PurpleRose PurpleRose 08-11-2022

Enact Announces Neenu Kainth as Chief Customer Experience Officer

By GlobeNewswire GlobeNewswire 08-22-2022