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inContact (inContact) ROE % : -22.69% (As of Sep. 2016)


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What is inContact ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. inContact's annualized net income for the quarter that ended in Sep. 2016 was $-27.4 Mil. inContact's average Total Stockholders Equity over the quarter that ended in Sep. 2016 was $121.0 Mil. Therefore, inContact's annualized ROE % for the quarter that ended in Sep. 2016 was -22.69%.

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

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

inContact ROE % Historical Data

The historical data trend for inContact'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.

inContact ROE % Chart

inContact Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -34.33 -9.95 -12.29 -11.86 -19.93

inContact Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 -17.77 -12.17 -7.08 -23.78 -22.69

Competitive Comparison of inContact's ROE %

For the Software - Application subindustry, inContact'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.


inContact's ROE % Distribution in the Software Industry

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

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



inContact ROE % Calculation

inContact's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=-22.784/( (103.424+125.257)/ 2 )
=-22.784/114.3405
=-19.93 %

inContact's annualized ROE % for the quarter that ended in Sep. 2016 is calculated as

ROE %=Net Income (Q: Sep. 2016 )/( (Total Stockholders Equity (Q: Jun. 2016 )+Total Stockholders Equity (Q: Sep. 2016 ))/ count )
=-27.444/( (123.023+118.919)/ 2 )
=-27.444/120.971
=-22.69 %

* 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. 2016) net income data. ROE % is displayed in the 30-year financial page.


inContact  (NAS:SAAS) 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. 2016 )
=Net Income/Total Stockholders Equity
=-27.444/120.971
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-27.444 / 268.072)*(268.072 / 267.876)*(267.876 / 120.971)
=Net Margin %*Asset Turnover*Equity Multiplier
=-10.24 %*1.0007*2.2144
=ROA %*Equity Multiplier
=-10.25 %*2.2144
=-22.69 %

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. 2016 )
=Net Income/Total Stockholders Equity
=-27.444/120.971
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-27.444 / -27.044) * (-27.044 / -19.964) * (-19.964 / 268.072) * (268.072 / 267.876) * (267.876 / 120.971)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0148 * 1.3546 * -7.45 % * 1.0007 * 2.2144
=-22.69 %

Note: The net income data used here is four times the quarterly (Sep. 2016) net income data. The Revenue data used here is four times the quarterly (Sep. 2016) 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.


inContact ROE % Related Terms

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


inContact (inContact) Business Description

Traded in Other Exchanges
N/A
Address
inContact Inc began in 1997 as a reseller of network connectivity services. The Company helps contact centers to create effective customer experiences through its portfolio of cloud contact center call routing, self-service and agent optimization solutions. Its cloud software solutions and services enable contact centers to operate more efficiently, optimize the cost and quality of every customer interaction, and ensure ongoing customer-centric business improvement and growth. The Company's technology platform provides its customers a pay-as-you-go solution without the costs and complexities of premise-based systems. Its proven cloud delivery model provides compelling total cost of ownership savings over premise-based technology by reducing upfront capital expenditures, eliminating the expense of system management and maintenance fees, while providing agility that enables businesses to scale their technology as they grow. The Company operates under two business segments: Software and Network connectivity. The Software segment includes all services related to the delivery of its cloud contact center software solutions. The Network connectivity segment includes all voice and data long distance services provided to customers. The Company provides software which includes the following: automatic call distributing, computer telephony integration, interactive voice response with speech recognition, outbound dialing, PBX and CRM integration, echo agent service surveys and reports, workforce optimization, quality monitoring and screen recording. The Company's registered trademarks include inContact, inTouch, ECHO, inCloud, Satisfaction as a Service and Personal Connection.
Executives
Theodore Stern director EXECUTIVE ASSOCIATES, ONE PPG PLACE, SUITE 2970, PITTSBURGH PA 15222
Hamid Akhavan director 1226 EARNESTINE ST., MCLEAN VA 22101
Scott Welch officer: Chief Operating Officer C/O FIVE9, INC., 4000 EXECUTIVE PARKWAY, SUITE 400, SAN RAMON CA 94583
Diker Management Llc 10 percent owner 570 LEXINGTON AVENUE, 27TH FLOOR, NEW YORK NY 10022
Edward D Bagley 10 percent owner 2350 OAK HILL LANE, SALT LAKE CITY UT 84121
Wynnefield Partners Small Cap Value Lp other: Holder of Common Stock 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Wynnefield Capital Management Llc other: Holder of Common Stock 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Partners Small Cap Value Lp I other: Holder of Common Stock 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Wynnefield Capital Inc other: Holder of Common Stock 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Small Cap Value Offshore Fund Ltd other: Holder of Common Stock 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
James Ozanne director C/O NMI, 2100 POWELL STREET, 12TH FLOOR, EMERYVILLE CA 94608

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