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Horizon Technology Finance (Horizon Technology Finance) ROE %

: -12.72% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Horizon Technology Finance's annualized net income for the quarter that ended in Dec. 2023 was $-42.64 Mil. Horizon Technology Finance's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $335.28 Mil. Therefore, Horizon Technology Finance's annualized ROE % for the quarter that ended in Dec. 2023 was -12.72%.

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

HRZN' s ROE % Range Over the Past 10 Years
Min: -5.35   Med: 7.73   Max: 12.25
Current: -5.16

During the past 13 years, Horizon Technology Finance's highest ROE % was 12.25%. The lowest was -5.35%. And the median was 7.73%.

HRZN's ROE % is ranked worse than
80.33% of 1698 companies
in the Asset Management industry
Industry Median: 4.075 vs HRZN: -5.16

Horizon Technology Finance ROE % Historical Data

The historical data trend for Horizon Technology Finance'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 12.25 [6] => 3.21 [7] => 12.13 [8] => 7.50 [9] => -5.35 )
Horizon Technology Finance Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.25 3.21 12.13 7.50 -5.35

Horizon Technology Finance Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % 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 Premium Member Only Premium Member Only Premium Member Only 5.13 6.63 0.18 -13.65 -12.72

Competitive Comparison

For the Asset Management subindustry, Horizon Technology Finance'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.


Horizon Technology Finance ROE % Distribution

For the Asset Management industry and Financial Services sector, Horizon Technology Finance's ROE % distribution charts can be found below:

* The bar in red indicates where Horizon Technology Finance's ROE % falls into.



Horizon Technology Finance ROE % Calculation

Horizon Technology Finance'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 )
=-17.185/( (318.448+323.981)/ 2 )
=-17.185/321.2145
=-5.35 %

Horizon Technology Finance's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-42.644/( (346.575+323.981)/ 2 )
=-42.644/335.278
=-12.72 %

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


Horizon Technology Finance  (NAS:HRZN) 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. 2023 )
=Net Income/Total Stockholders Equity
=-42.644/335.278
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-42.644 / -32.32)*(-32.32 / 799.8)*(799.8 / 335.278)
=Net Margin %*Asset Turnover*Equity Multiplier
=131.94 %*-0.0404*2.3855
=ROA %*Equity Multiplier
=-5.33 %*2.3855
=-12.72 %

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. 2023 )
=Net Income/Total Stockholders Equity
=-42.644/335.278
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-42.644 / -38.852) * (-38.852 / -32.32) * (-32.32 / 799.8) * (799.8 / 335.278)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1.0976 * 120.21 % * -0.0404 * 2.3855
=-12.72 %

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


Horizon Technology Finance ROE % Related Terms

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


Horizon Technology Finance (Horizon Technology Finance) Business Description

Traded in Other Exchanges
N/A
Address
312 Farmington Avenue, Farmington, CT, USA, 06032
Horizon Technology Finance Corp is a specialty finance company. Its investment objective is to maximize its investment portfolio's total return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. It lends to and invests in development-stage companies in the technology, life science, healthcare information and services and sustainability industries.
Executives
Michael Balkin director C/O FORESIGHT ACQUISITION CORP., 233 N. MICHIGAN AVE., SUITE 1410, CHICAGO IL 60601
Jonathan Joseph Goodman director 312 FARMINGTON AVENUE, FARMINGTON CT 06032
Kimberley Ann O'connor director 312 FARMINGTON AVENUE, FARMINGTON CT 06032
Dombrowski Lynn Denise Murray officer: Chief Accounting Officer 312 FARMINGTON AVENUE, FARMINGTON CT 06032
Gerald A. Michaud director, officer: President 312 FARMINGTON AVENUE, FARMINGTON CT 06032
Pomeroy Robert D. Jr. director, officer: Chief Executive Officer 312 FARMINGTON AVENUE, FARMINGTON CT 06032
Daniel R. Trolio officer: CFO 312 FARMINGTON AVENUE, FARMINGTON CT 06032
Edmund V. Mahoney director 312 FARMINGTON AVENUE, FARMINGTON CT 06032
Joseph J Savage director WEBSTER FINANCIAL CORP, 145 BANK ST, WATERBURY CT 06702
Elaine A Sarsynski director 312 FARMINGTON AVE, FARMINGTON CT 06032
Diane Earle officer: Chief Credit Officer 312 FARMINGTON AVENUE, FARMINGTON CT 06032
Christopher M. Mathieu officer: SVP, CFO and Treasurer 312 FARMINGTON AVENUE, FARMINGTON CT 06032
Christopher B. Woodward director 312 FARMINGTON AVENUE, FARMINGTON CT 06032
Compass Group Investments, Ltd. 10 percent owner BELVEDERE BUILDING, 69 PITTS BAY ROAD, HAMILTON HM 08 D0 00000
David P. Swanson director 312 FARMINGTON AVENUE, FARMINGTON CT 06032