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Movella Holdings (Movella Holdings) ROE % : -73.83% (As of Jun. 2023)


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What is Movella Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Movella Holdings's annualized net income for the quarter that ended in Jun. 2023 was $-55.44 Mil. Movella Holdings's average Total Stockholders Equity over the quarter that ended in Jun. 2023 was $75.09 Mil. Therefore, Movella Holdings's annualized ROE % for the quarter that ended in Jun. 2023 was -73.83%.

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

MVLA' s ROE % Range Over the Past 10 Years
Min: -14.26   Med: 7.26   Max: Negative Equity
Current: -14.26

During the past 3 years, Movella Holdings's highest ROE % was Negative Equity%. The lowest was -14.26%. And the median was 7.26%.

MVLA's ROE % is ranked worse than
72.87% of 2639 companies
in the Software industry
Industry Median: 3.17 vs MVLA: -14.26

Movella Holdings ROE % Historical Data

The historical data trend for Movella Holdings'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.

Movella Holdings ROE % Chart

Movella Holdings Annual Data
Trend Dec20 Dec21 Dec22
ROE %
Negative Equity 7.26 -0.07

Movella Holdings Quarterly Data
Dec20 Jun21 Dec21 Mar22 Jun22 Dec22 Mar23 Jun23
ROE % Get a 7-Day Free Trial -7.29 - -58.34 31.92 -73.83

Competitive Comparison of Movella Holdings's ROE %

For the Software - Application subindustry, Movella Holdings'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.


Movella Holdings's ROE % Distribution in the Software Industry

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

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



Movella Holdings ROE % Calculation

Movella Holdings's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=-0.217/( (307.203+318.016)/ 2 )
=-0.217/312.6095
=-0.07 %

Movella Holdings's annualized ROE % for the quarter that ended in Jun. 2023 is calculated as

ROE %=Net Income (Q: Jun. 2023 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Jun. 2023 ))/ count )
=-55.436/( (78.863+71.315)/ 2 )
=-55.436/75.089
=-73.83 %

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


Movella Holdings  (OTCPK:MVLA) 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: Jun. 2023 )
=Net Income/Total Stockholders Equity
=-55.436/75.089
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-55.436 / 33.436)*(33.436 / 144.82)*(144.82 / 75.089)
=Net Margin %*Asset Turnover*Equity Multiplier
=-165.8 %*0.2309*1.9286
=ROA %*Equity Multiplier
=-38.28 %*1.9286
=-73.83 %

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: Jun. 2023 )
=Net Income/Total Stockholders Equity
=-55.436/75.089
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-55.436 / -55.904) * (-55.904 / -30.944) * (-30.944 / 33.436) * (33.436 / 144.82) * (144.82 / 75.089)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9916 * 1.8066 * -92.55 % * 0.2309 * 1.9286
=-73.83 %

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


Movella Holdings ROE % Related Terms

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


Movella Holdings (Movella Holdings) Business Description

Traded in Other Exchanges
N/A
Address
3535 Executive Terminal Drive, Suite 110, Henderson, NV, USA, 89052
Movella Holdings Inc is a full-stack provider of sensors, software, and analytics that enable the digitization of movement. It serves the entertainment, health & sports, and automation & mobility markets.
Executives
Ben A Lee director, officer: See Remarks 3408 GARRETT DRIVE, SANTA CLARA CA 95054
Stephen M Smith officer: Chief Financial Officer
Boele De Bie officer: Chief Operating Officer C/O MOVELLA INC., 2570 NORTH FIRST STREET, SUITE 300, SAN JOSE CA 95131
Industry Ventures Tech Buyout, Lp 10 percent owner 30 HOTALING PLACE, 3RD FLOOR, SAN FRANCISCO CA 94111
Fp Credit Partners Phoenix Ii, L.p. 10 percent owner ONE LETTERMAN DR, BUILDING C - STE 410, SAN FRANCISCO CA 94129
Fp Credit Partners Gp Ii, L.p. 10 percent owner ONE LETTERMAN DR, BUILDING C - STE 410, SAN FRANCISCO CA 94129
Fp Credit Partners Ii, L.p. 10 percent owner ONE LETTERMAN DR, BUILDING C - STE 410, SAN FRANCISCO CA 94129
Fp Credit Partners Gp Ii Management, Llc 10 percent owner ONE LETTERMAN DR, BUILDING C - STE 410, SAN FRANCISCO CA 94129
Iv Tech Buyout Gp, Llc 10 percent owner 1950 UNIVERSITY AVENUE, SUITE 350, PALO ALTO CA 94303
Arrowhead Holdings, Llc / New 10 percent owner 1950 UNIVERSITY AVENUE, SUITE 350, PALO ALTO CA 94303
Hggc Pathfinder Holdings I, Llc 10 percent owner 1950 UNIVERSITY AVENUE, SUITE 350, PALO ALTO CA 94303
Pathfinder Acquisition Llc 10 percent owner 1950 UNIVERSITY AVENUE, PALO ALTO CA 94303
Chung David H S director 10900 NE 8TH STREET, SUITE 800, BELLEVUE WA 98004
Eric Salzman director C/O 8X8 INC., 675 CREEKSIDE WAY, CAMPCALL CA 95008
Wen Hsuan Hsieh director C/O DESKTOP METAL, INC., 63 THIRD AVENUE, BURLINGTON MA 01803