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Micro Focus International (Micro Focus International) ROE % : -1.78% (As of Apr. 2022)


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What is Micro Focus International ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Micro Focus International's annualized net income for the quarter that ended in Apr. 2022 was $-49 Mil. Micro Focus International's average Total Stockholders Equity over the quarter that ended in Apr. 2022 was $2,737 Mil. Therefore, Micro Focus International's annualized ROE % for the quarter that ended in Apr. 2022 was -1.78%.

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

MCFUF' s ROE % Range Over the Past 10 Years
Min: -61.52   Med: 26.68   Max: 519.63
Current: -8.02

During the past 13 years, Micro Focus International's highest ROE % was 519.63%. The lowest was -61.52%. And the median was 26.68%.

MCFUF's ROE % is not ranked
in the Software industry.
Industry Median: 3.17 vs MCFUF: -8.02

Micro Focus International ROE % Historical Data

The historical data trend for Micro Focus International'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.

Micro Focus International ROE % Chart

Micro Focus International Annual Data
Trend Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Oct19 Oct20 Oct21
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.35 9.85 37.24 -62.58 -14.06

Micro Focus International Semi-Annual Data
Apr12 Oct12 Apr13 Oct13 Apr14 Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22
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 -36.61 -94.30 -13.95 -13.98 -1.78

Competitive Comparison of Micro Focus International's ROE %

For the Software - Infrastructure subindustry, Micro Focus International'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.


Micro Focus International's ROE % Distribution in the Software Industry

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

* The bar in red indicates where Micro Focus International's ROE % falls into.



Micro Focus International ROE % Calculation

Micro Focus International's annualized ROE % for the fiscal year that ended in Oct. 2021 is calculated as

ROE %=Net Income (A: Oct. 2021 )/( (Total Stockholders Equity (A: Oct. 2020 )+Total Stockholders Equity (A: Oct. 2021 ))/ count )
=-424.4/( (3215.1+2821)/ 2 )
=-424.4/3018.05
=-14.06 %

Micro Focus International's annualized ROE % for the quarter that ended in Apr. 2022 is calculated as

ROE %=Net Income (Q: Apr. 2022 )/( (Total Stockholders Equity (Q: Oct. 2021 )+Total Stockholders Equity (Q: Apr. 2022 ))/ count )
=-48.8/( (2821+2652.3)/ 2 )
=-48.8/2736.65
=-1.78 %

* 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 two times the semi-annual (Apr. 2022) net income data. ROE % is displayed in the 30-year financial page.


Micro Focus International  (OTCPK:MCFUF) 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: Apr. 2022 )
=Net Income/Total Stockholders Equity
=-48.8/2736.65
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-48.8 / 2539.2)*(2539.2 / 9763.65)*(9763.65 / 2736.65)
=Net Margin %*Asset Turnover*Equity Multiplier
=-1.92 %*0.2601*3.5677
=ROA %*Equity Multiplier
=-0.5 %*3.5677
=-1.78 %

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: Apr. 2022 )
=Net Income/Total Stockholders Equity
=-48.8/2736.65
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-48.8 / -85.8) * (-85.8 / 70.6) * (70.6 / 2539.2) * (2539.2 / 9763.65) * (9763.65 / 2736.65)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5688 * -1.2153 * 2.78 % * 0.2601 * 3.5677
=-1.78 %

Note: The net income data used here is two times the semi-annual (Apr. 2022) net income data. The Revenue data used here is two times the semi-annual (Apr. 2022) 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.


Micro Focus International ROE % Related Terms

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Micro Focus International (Micro Focus International) Business Description

Traded in Other Exchanges
N/A
Address
22-30 Old Bath Road, The Lawn, Newbury, Berkshire, GBR, RG14 1QN
Micro Focus International is an enterprise software company supporting the technology needs and challenges. Its solutions help organizations leverage existing IT investments, enterprise applications and emerging technologies to address complex, rapidly evolving business requirements while protecting corporate information at all times. Its product portfolios are Security, IT Operations Management, Application Delivery Management, Information Management and Governance and Application Modernization and Connectivity.