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Carbonite (Carbonite) ROE % : -22.09% (As of Sep. 2019)


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What is Carbonite ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Carbonite's annualized net income for the quarter that ended in Sep. 2019 was $-55.8 Mil. Carbonite's average Total Stockholders Equity over the quarter that ended in Sep. 2019 was $252.7 Mil. Therefore, Carbonite's annualized ROE % for the quarter that ended in Sep. 2019 was -22.09%.

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

CARB's ROE % is not ranked *
in the Software industry.
Industry Median: 3.17
* Ranked among companies with meaningful ROE % only.

Carbonite ROE % Historical Data

The historical data trend for Carbonite'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.

Carbonite ROE % Chart

Carbonite Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -68.35 -276.92 -118.69 -18.15 5.12

Carbonite Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 1.37 1.08 3.08 -17.27 -22.09

Competitive Comparison of Carbonite's ROE %

For the Software - Infrastructure subindustry, Carbonite'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.


Carbonite's ROE % Distribution in the Software Industry

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

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



Carbonite ROE % Calculation

Carbonite's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=7.562/( (38.265+257.21)/ 2 )
=7.562/147.7375
=5.12 %

Carbonite's annualized ROE % for the quarter that ended in Sep. 2019 is calculated as

ROE %=Net Income (Q: Sep. 2019 )/( (Total Stockholders Equity (Q: Jun. 2019 )+Total Stockholders Equity (Q: Sep. 2019 ))/ count )
=-55.824/( (259.172+246.137)/ 2 )
=-55.824/252.6545
=-22.09 %

* 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 (Sep. 2019) net income data. ROE % is displayed in the 30-year financial page.


Carbonite  (NAS:CARB) 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: Sep. 2019 )
=Net Income/Total Stockholders Equity
=-55.824/252.6545
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-55.824 / 502.384)*(502.384 / 1223.4665)*(1223.4665 / 252.6545)
=Net Margin %*Asset Turnover*Equity Multiplier
=-11.11 %*0.4106*4.8424
=ROA %*Equity Multiplier
=-4.56 %*4.8424
=-22.09 %

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: Sep. 2019 )
=Net Income/Total Stockholders Equity
=-55.824/252.6545
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-55.824 / -67.588) * (-67.588 / -27.604) * (-27.604 / 502.384) * (502.384 / 1223.4665) * (1223.4665 / 252.6545)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8259 * 2.4485 * -5.49 % * 0.4106 * 4.8424
=-22.09 %

Note: The net income data used here is four times the quarterly (Sep. 2019) net income data. The Revenue data used here is four times the quarterly (Sep. 2019) 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.


Carbonite ROE % Related Terms

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


Carbonite (Carbonite) Business Description

Traded in Other Exchanges
N/A
Address
Two Avenue de Lafayette, Boston, MA, USA, 02111
Carbonite Inc is a provider of cloud and hybrid business continuity solutions. Its solutions include Carbonite Personal, which offers unlimited cloud backup for individuals, and Carbonite which offers cloud backup for small and midsize businesses, for an annual flat fee based on the amount of storage needed. Both solutions are packaged at three different service levels. The company derives revenues from subscription fees for its software-as-a-service offerings. A large majority of the firm's revenue is generated in the United States.
Executives
Linda Connly director C/O CARBONITE, INC., TWO AVENUE DE LAFAYETTE, BOSTON MA 02111
Charles Kane director 289 TURNPIKE RD, WESTBORO MA 01581
Anthony Folger officer: Chief Financial Officer C/O CARBONITE, INC., 177 HUNTINGTON AVENUE, BOSTON MA 02115
Todd Krasnow director C/O CARBONITE, INC., 177 HUNTINGTON AVENUE, BOSTON MA 02115
Marina Levinson director C/O ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, SUITE 500, PLEASANTON CA 94588
Mohamad Ali director, officer: CEO and President 2 AVENUE DE LAFAYETTE, BOSTON MA 02111
Peter Gyenes director 50 WASHINGTON ST, WESBOROUGH MA 012581
Mv Management X, L.l.c. 10 percent owner 3000 SAND HILL ROAD, BUILDING 4, SUITE 100, MENLO PARK CA 94025
Menlo Ventures X L P 10 percent owner 2884 SAND HILL RD, SUITE 100, MENLO PARK CA 94025
Menlo Entrepreneurs Fund X Lp 10 percent owner C/O MENLO VENTURES, 2884 SAND HILL RD SUITE 100, MENLO PARK CA 94025
Mmef X Lp 10 percent owner C/O MENLO VENTURES, 2884 SAND HILL RD SUITE 100, MENLO PARK CA 94025
Tim Clifford director C/O CARBONITE, INC., 177 HUNTINGTON AVENUE, BOSTON MA 02115
Thomas A. Murray officer: SVP, Marketing C/O CARBONITE, INC., 177 HUNTINGTON AVENUE, BOSTON MA 02115
Gary Hromadko director 301 VELOCITY WAY 5TH FLOOR, FOSTER CITY CA 94404
Crosslink Capital Inc other: Affiliate of Director 2180 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025

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