GURUFOCUS.COM » STOCK LIST » Technology » Software » Verint Systems Inc (NAS:VRNT) » Definitions » ROE %

Verint Systems (Verint Systems) ROE % : 9.17% (As of Jan. 2024)


View and export this data going back to 2002. Start your Free Trial

What is Verint Systems ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Verint Systems's annualized net income for the quarter that ended in Jan. 2024 was $114.8 Mil. Verint Systems's average Total Stockholders Equity over the quarter that ended in Jan. 2024 was $1,252.7 Mil. Therefore, Verint Systems's annualized ROE % for the quarter that ended in Jan. 2024 was 9.17%.

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

VRNT' s ROE % Range Over the Past 10 Years
Min: -2.84   Med: 1.41   Max: 5.57
Current: 3.06

During the past 13 years, Verint Systems's highest ROE % was 5.57%. The lowest was -2.84%. And the median was 1.41%.

VRNT's ROE % is ranked worse than
50.36% of 2639 companies
in the Software industry
Industry Median: 3.17 vs VRNT: 3.06

Verint Systems ROE % Historical Data

The historical data trend for Verint Systems'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.

Verint Systems ROE % Chart

Verint Systems Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.31 -0.54 1.01 1.11 3.02

Verint Systems Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 4.04 1.03 -1.91 4.04 9.17

Competitive Comparison of Verint Systems's ROE %

For the Software - Infrastructure subindustry, Verint Systems'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.


Verint Systems's ROE % Distribution in the Software Industry

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

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



Verint Systems ROE % Calculation

Verint Systems's annualized ROE % for the fiscal year that ended in Jan. 2024 is calculated as

ROE %=Net Income (A: Jan. 2024 )/( (Total Stockholders Equity (A: Jan. 2023 )+Total Stockholders Equity (A: Jan. 2024 ))/ count )
=38.61/( (1292.111+1266.37)/ 2 )
=38.61/1279.2405
=3.02 %

Verint Systems's annualized ROE % for the quarter that ended in Jan. 2024 is calculated as

ROE %=Net Income (Q: Jan. 2024 )/( (Total Stockholders Equity (Q: Oct. 2023 )+Total Stockholders Equity (Q: Jan. 2024 ))/ count )
=114.812/( (1239.013+1266.37)/ 2 )
=114.812/1252.6915
=9.17 %

* 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 (Jan. 2024) net income data. ROE % is displayed in the 30-year financial page.


Verint Systems  (NAS:VRNT) 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: Jan. 2024 )
=Net Income/Total Stockholders Equity
=114.812/1252.6915
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(114.812 / 1060.436)*(1060.436 / 2180.529)*(2180.529 / 1252.6915)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.83 %*0.4863*1.7407
=ROA %*Equity Multiplier
=5.27 %*1.7407
=9.17 %

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: Jan. 2024 )
=Net Income/Total Stockholders Equity
=114.812/1252.6915
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (114.812 / 143.156) * (143.156 / 160.828) * (160.828 / 1060.436) * (1060.436 / 2180.529) * (2180.529 / 1252.6915)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.802 * 0.8901 * 15.17 % * 0.4863 * 1.7407
=9.17 %

Note: The net income data used here is four times the quarterly (Jan. 2024) net income data. The Revenue data used here is four times the quarterly (Jan. 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.


Verint Systems ROE % Related Terms

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


Verint Systems (Verint Systems) Business Description

Traded in Other Exchanges
Address
175 Broadhollow Road, Suite 100, Melville, NY, USA, 11747
Verint Systems Inc with its subsidiaries helps brands provide Boundless Customer Engagement. The company's solutions help iconic brands close the gap created when it lacks the resources required to deliver experiences that fulfill customer expectations. The operating business segments are Customer Engagement. Geographically, it derives a majority of its revenue from the United States.
Executives
Grant A Highlander officer: Chief Financial Officer C/O VERINT SYSTEMS INC., 175 BROADHOLLOW ROAD, SUITE 100, MELVILLE NY 11747
William Kurtz director NOVELLUS SYSTEMS, INC., 4000 NORTH FIRST STREET, SAN JOSE CA 95134
Elan Moriah officer: President, Contact Center Div.
Dan Bodner director, officer: President & CEO Verint Systems
Peter Fante officer: General Counsel
Richard N Nottenburg director 1303 EAST ALGONQUIN ROAD, SCHAUMBURG IL 60196
Yvette H Smith director 175 BROADHOLLOW ROAD, MELVILLE NY 11747
Douglas Robinson officer: Chief Financial Officer C/O VERINT SYSTEMS INC., 330 SOUTH SERVICE ROAD, MELVILLE NY 11747
John R Egan director 176 SOUTH ST., HOPKINTON MA 01748
Kristen Robinson director 2101 WEBSTER STREET #1650, OAKLAND CA 94612
French R Reid Jr director C/O INTERGRAPH CORP, 288 DUNLOP BLVD, HUNTSVILLE AL 35824
Linda M. Crawford director 3365 CLAY STREET, SAN FRANCISCO CA 94118
Apax Guernsey (holdco) Pcc Ltd 10 percent owner THIRD FLOOR, ROYAL BANK PLACE, 1 GLATEGNY ESPLANADE, ST. PETER PORT, GUERNSEY X0 GY1 2HJ
Valor Buyer Lp 10 percent owner C/O APAX PARTNERS, LP, 601 LEXINGTON AVENUE, 53RD FLOOR, NEW YORK NY 10022
Apax X Gp Co. Ltd 10 percent owner THIRD FLOOR, ROYAL BANK PLACE, 1 GLATEGNY ESPLANADE, ST. PETER PORT Y7 GY1 2HJ