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Verra Mobility (Verra Mobility) ROE % : 26.79% (As of Mar. 2024)


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What is Verra Mobility ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Verra Mobility's annualized net income for the quarter that ended in Mar. 2024 was $116.6 Mil. Verra Mobility's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $435.2 Mil. Therefore, Verra Mobility's annualized ROE % for the quarter that ended in Mar. 2024 was 26.79%.

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

VRRM' s ROE % Range Over the Past 10 Years
Min: -33.53   Med: 14.4   Max: 57.18
Current: 20.63

During the past 8 years, Verra Mobility's highest ROE % was 57.18%. The lowest was -33.53%. And the median was 14.40%.

VRRM's ROE % is ranked better than
86.92% of 1629 companies
in the Construction industry
Industry Median: 6.71 vs VRRM: 20.63

Verra Mobility ROE % Historical Data

The historical data trend for Verra Mobility'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.

Verra Mobility ROE % Chart

Verra Mobility Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial 5.58 -1.46 14.40 37.67 17.47

Verra Mobility 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 7.82 21.76 27.89 2.93 26.79

Competitive Comparison of Verra Mobility's ROE %

For the Infrastructure Operations subindustry, Verra Mobility'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.


Verra Mobility's ROE % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Verra Mobility's ROE % distribution charts can be found below:

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



Verra Mobility ROE % Calculation

Verra Mobility'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 )
=57.015/( (231.07+421.467)/ 2 )
=57.015/326.2685
=17.47 %

Verra Mobility'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 )
=116.596/( (421.467+448.995)/ 2 )
=116.596/435.231
=26.79 %

* 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.


Verra Mobility  (NAS:VRRM) 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
=116.596/435.231
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(116.596 / 838.92)*(838.92 / 1779.9205)*(1779.9205 / 435.231)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.9 %*0.4713*4.0896
=ROA %*Equity Multiplier
=6.55 %*4.0896
=26.79 %

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
=116.596/435.231
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (116.596 / 155.888) * (155.888 / 217.412) * (217.412 / 838.92) * (838.92 / 1779.9205) * (1779.9205 / 435.231)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7479 * 0.717 * 25.92 % * 0.4713 * 4.0896
=26.79 %

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.


Verra Mobility ROE % Related Terms

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


Verra Mobility (Verra Mobility) Business Description

Traded in Other Exchanges
Address
1150 North Alma School Road, Mesa, AZ, USA, 85201
Verra Mobility Corp provides smart transportation solutions. The company develops and uses technology and data intelligence to help make transportation safer and easier. It operates in three segments namely Commercial Services, Government Solutions, and Parking Solutions. It generates maximum revenue from the Commercial Services segment. The commercial Services segment delivers tolling and violation management services to rental car companies, commercial fleet vehicle owners, and violation issuing authorities.
Executives
Craig C Conti officer: EVP 1 S. WACKER DR., SUITE 1000, CHICAGO IL 60606
Steve Lalla officer: EVP Commercial Services C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
David Martin Roberts director, officer: President and CEO 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Jonathan Keyser other: Chief Legal Officer 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Jonathan Baldwin officer: EVP-Government Solutions 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Sarah E Farrell director 572 RUGER STREET, SUITE B, SAN FRANCISCO CA 94129
Platinum Equity Llc director, 10 percent owner 360 NORTH CRESCENT DRIVE, BEVERLY HILLS CA 90210
Blake Norman P Iii officer: Pres. T2 Systems 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Patricia Chiodo officer: Chief Financial Officer 5227 EAST GLORIA LANE, CAVE CREEK AZ 85331
Rebecca Collins officer: General Counsel 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Mark J. Talbot officer: EVP Government Solutions 1150 NORTH ALMA SCHOOL ROAD, MESA AZ 85201
Michael P Huerta director 1800 M STREET NW SUITE 800, WASHINGTON DC 20036
Patrick J Byrne director 395 PAGE MILL ROAD, MS A3-18, PALO ALTO CA 94306
Garrett Fristoe Miller officer: Executive Vice President 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Vincent Brigidi officer: Exec. VP 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201