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Innovative Solutions and Support (Innovative Solutions and Support) ROE % : 10.77% (As of Dec. 2023)


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What is Innovative Solutions and Support ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Innovative Solutions and Support's annualized net income for the quarter that ended in Dec. 2023 was $4.23 Mil. Innovative Solutions and Support's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $39.27 Mil. Therefore, Innovative Solutions and Support's annualized ROE % for the quarter that ended in Dec. 2023 was 10.77%.

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

ISSC' s ROE % Range Over the Past 10 Years
Min: -17.16   Med: 8.21   Max: 19.97
Current: 17.68

During the past 13 years, Innovative Solutions and Support's highest ROE % was 19.97%. The lowest was -17.16%. And the median was 8.21%.

ISSC's ROE % is ranked better than
81.82% of 297 companies
in the Aerospace & Defense industry
Industry Median: 6.3 vs ISSC: 17.68

Innovative Solutions and Support ROE % Historical Data

The historical data trend for Innovative Solutions and Support'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.

Innovative Solutions and Support ROE % Chart

Innovative Solutions and Support Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.26 10.22 19.35 19.97 17.38

Innovative Solutions and Support Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 8.90 15.35 16.28 28.33 10.77

Competitive Comparison of Innovative Solutions and Support's ROE %

For the Aerospace & Defense subindustry, Innovative Solutions and Support'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.


Innovative Solutions and Support's ROE % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Innovative Solutions and Support's ROE % distribution charts can be found below:

* The bar in red indicates where Innovative Solutions and Support's ROE % falls into.



Innovative Solutions and Support ROE % Calculation

Innovative Solutions and Support's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as

ROE %=Net Income (A: Sep. 2023 )/( (Total Stockholders Equity (A: Sep. 2022 )+Total Stockholders Equity (A: Sep. 2023 ))/ count )
=6.028/( (30.75+38.637)/ 2 )
=6.028/34.6935
=17.38 %

Innovative Solutions and Support'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 )
=4.228/( (38.637+39.9)/ 2 )
=4.228/39.2685
=10.77 %

* 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.


Innovative Solutions and Support  (NAS:ISSC) 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
=4.228/39.2685
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4.228 / 37.232)*(37.232 / 59.3275)*(59.3275 / 39.2685)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.36 %*0.6276*1.5108
=ROA %*Equity Multiplier
=7.13 %*1.5108
=10.77 %

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
=4.228/39.2685
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4.228 / 5.408) * (5.408 / 6.46) * (6.46 / 37.232) * (37.232 / 59.3275) * (59.3275 / 39.2685)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7818 * 0.8372 * 17.35 % * 0.6276 * 1.5108
=10.77 %

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.


Innovative Solutions and Support ROE % Related Terms

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


Innovative Solutions and Support (Innovative Solutions and Support) Business Description

Traded in Other Exchanges
N/A
Address
720 Pennsylvania Drive, Exton, PA, USA, 19341
Innovative Solutions and Support Inc is a systems integrator that designs, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance, and cockpit display systems for retrofit applications and original equipment manufacturers. The company supplies integrated Flight Management Systems, Flat Panel Display Systems, Integrated Standby Units, Advanced Global Positioning System receivers that enable reduced carbon footprint navigation, and an Autothrottle, which allows a pilot to automatically control the power setting of the engine and is designed to reduce pilot workload and enhance safety. It sells its products to both the OEM and the retrofit markets.
Executives
Glen R Bressner director 720 PENNSYLAVANIA DR, EXTON PA 19341
Estate Of Geoffrey S. M. Hedrick 10 percent owner C/O INNOVATIVE SOLUTIONS AND SUPPORT INC, 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Winston J Churchill director C/O SCP PARTNERS, SUITE 300, 1200 LIBERTY RIDGE DRIVE, WAYNE PA 19087
Christopher Harborne 10 percent owner 23F M THAI TOWER, ALL SEASONS PLACE, 87 WIRELESS ROAD, BANGKOK W1 10300
Michael Linacre officer: Chief Financial Officer 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Parizad Olver director C/O SEMPER PARATUS ACQUISITION CORP., 767 THIRD AVENUE, 38TH FLOOR, NEW YORK NY 10017
Mittelstaedt Robert E Jr director
Stephen L Belland director 5717 COMPASS COURT, CAPE CORAL FL 33914
Roger Anthony Carolin director 1200 LIBERTY RIDGE DRIVE, WAYNE PA 19087
Relland Winand officer: Chief Financial Officer C/O INNOVATIVE SOLUTIONS & SUPPORT INC., 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Shahram Askarpour officer: President C/O INNOVATIVE SOLUTIONS & SUPPORT, INC., 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Ronald Albrecht officer: Chief Financial Officer C/O INNOVATIVE SOLUTIONS AND SUPPORT INC, 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Robert Mionis director
John C Long officer: Chief Financial Officer 2400 BERNVILLE ROAD, READING PA 19612
Raymond J Wilson director 720 PENNSYLVANIA DRIVE, EXTON PA 19341

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