Nelnet (Nelnet) ROE %

: -1.04% (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. Nelnet's annualized net income for the quarter that ended in Dec. 2023 was $-34 Mil. Nelnet's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $3,279 Mil. Therefore, Nelnet's annualized ROE % for the quarter that ended in Dec. 2023 was -1.04%.

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

NNI' s ROE % Range Over the Past 10 Years
Min: 2.82 Med: 13.13 Max: 19.41
Current: 2.82

During the past 13 years, Nelnet's highest ROE % was 19.41%. The lowest was 2.82%. And the median was 13.13%.

NNI's ROE % is ranked worse than
64.33% of 513 companies
in the Credit Services industry
Industry Median: 6.49 vs NNI: 2.82

Nelnet ROE % Historical Data

The historical data trend for Nelnet'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] => 6.05 [6] => 14.05 [7] => 14.09 [8] => 13.25 [9] => 2.83 )

Nelnet Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROE %

6.05

14.05

14.09

13.25

2.83

Nelnet Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROE %																3.86	3.30	3.48	5.53	-1.04

Competitive Comparison

For the Credit Services subindustry, Nelnet'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.

Nelnet ROE % Distribution

For the Credit Services industry and Financial Services sector, Nelnet's ROE % distribution charts can be found below:

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

Nelnet ROE % Calculation

Nelnet'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 )
	=	91.532	/	( (3198.959	+	3262.621)	/ 2 )
	=	91.532	/	3230.79
	=	2.83 %

Nelnet'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 )
	=	-34.216	/	( (3294.981	+	3262.621)	/ 2 )
	=	-34.216	/	3278.801
	=	-1.04 %

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.

Nelnet (NYSE:NNI) 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
=	-34.216	/	3278.801
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-34.216 / 896.172)	*	(896.172 / 16979.6635)	*	(16979.6635 / 3278.801)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-3.82 %	*	0.0528	*	5.1786
=	ROA %	*	Equity Multiplier
=	-0.2 %	*	5.1786
=	-1.04 %

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
=	-34.216	/	3278.801
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-34.216 / -158.54)	*	(-158.54 / 896.172)	*	(896.172 / 16979.6635)	*	(16979.6635 / 3278.801)
=	Tax Burden	*	Pretax Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.2158	*	-17.69 %	*	0.0528	*	5.1786
=	-1.04 %

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.

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.

Nelnet ROE % Related Terms

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

Nelnet (Nelnet) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Nelnet Inc (NYSE:NNI) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

NIJ:Germany

Address

121 South 13th Street, Suite 100, Lincoln, NE, USA, 68508

Website

https://www.nelnet.com

Nelnet Inc is a United States based company engaged in these five segments; Loan Servicing and Systems focuses on student and consumer loan origination services and servicing, loan origination and servicing-related technology solutions, and outsourcing business services, Education Technology, Services, and Payment Processing provides education services, payment technology, and community management solutions for K-12 schools, institutions, churches, and businesses, Asset Generation and Management Includes the acquisition and management of student and other loan assets, Nelnet Bank focuses on the private education and unsecured consumer loan markets, and Communications provides fiber optic service for internet, telephone, and television services.

Executives

William J Munn	officer: Secy, Chief Legal Off, Gen Cou	121 S. 13TH STREET, SUITE 100, LINCOLN NE 68508
Van Deun Jona M	director	121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508
Dan D Muhleisen	10 percent owner	6321 DOECREEK CIRCLE, LINCOLN NE 68516
Preeta D Bansal	director	121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508
David S Graff	director	121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508
Kimberly Kay Rath	director	121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508
Kathleen Anne Farrell	director	121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508
Matthew W Dunlap	director, officer: Chief Business Develop. Off.	121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508
Magnolia Capital Fund, Lp	other: See remarks	1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Magnolia Group, Llc	other: See remarks	1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Adam K Peterson	director, other: See below	1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Shelby J Butterfield	10 percent owner	121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508
Michael S Dunlap	director, 10 percent owner, officer: Chairman, Co-Chief Ex. Officer	121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508
Joann M Martin	director	6221 ANDREW COURT, LINCOLN NE 68512
Angie Mulheisen	10 percent owner	3643 S 48TH STREET P O BOX 82535, LINCOLN NE 68501-2535