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Apptio (Apptio) ROA % : -4.38% (As of Sep. 2018)


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What is Apptio ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Apptio's annualized Net Income for the quarter that ended in Sep. 2018 was $-18.3 Mil. Apptio's average Total Assets over the quarter that ended in Sep. 2018 was $417.2 Mil. Therefore, Apptio's annualized ROA % for the quarter that ended in Sep. 2018 was -4.38%.

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

APTI's ROA % is not ranked *
in the Software industry.
Industry Median: 0.985
* Ranked among companies with meaningful ROA % only.

Apptio ROA % Historical Data

The historical data trend for Apptio's ROA % 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.

Apptio ROA % Chart

Apptio Annual Data
Trend Dec14 Dec15 Dec16 Dec17
ROA %
-30.31 -39.50 -21.47 -11.94

Apptio Quarterly Data
Dec14 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.37 -13.76 -10.12 -5.19 -4.38

Competitive Comparison of Apptio's ROA %

For the Software - Application subindustry, Apptio's ROA %, along with its competitors' market caps and ROA % 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.


Apptio's ROA % Distribution in the Software Industry

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

* The bar in red indicates where Apptio's ROA % falls into.



Apptio ROA % Calculation

Apptio's annualized ROA % for the fiscal year that ended in Dec. 2017 is calculated as:

ROA %=Net Income (A: Dec. 2017 )/( (Total Assets (A: Dec. 2016 )+Total Assets (A: Dec. 2017 ))/ count )
=-25.621/( (194.782+234.251)/ 2 )
=-25.621/214.5165
=-11.94 %

Apptio's annualized ROA % for the quarter that ended in Sep. 2018 is calculated as:

ROA %=Net Income (Q: Sep. 2018 )/( (Total Assets (Q: Jun. 2018 )+Total Assets (Q: Sep. 2018 ))/ count )
=-18.28/( (411.05+423.262)/ 2 )
=-18.28/417.156
=-4.38 %

* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Sep. 2018) net income data. ROA % is displayed in the 30-year financial page.


Apptio  (NAS:APTI) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Sep. 2018 )
=Net Income/Total Assets
=-18.28/417.156
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-18.28 / 236.892)*(236.892 / 417.156)
=Net Margin %*Asset Turnover
=-7.72 %*0.5679
=-4.38 %

Note: The Net Income data used here is four times the quarterly (Sep. 2018) net income data. The Revenue data used here is four times the quarterly (Sep. 2018) revenue data.

* 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

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Apptio ROA % Related Terms

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Apptio (Apptio) Business Description

Traded in Other Exchanges
N/A
Address
Apptio Inc develops and sells Technology Business Management or TGM solutions. Its cloud-based platform and SaaS applications enable IT leaders to analyze, optimize and plan technology investment and benchmark financial and operational performance against peers. It empowers IT leaders to transform IT into a service provider, to navigate the cloud transition, and to shift technology resources to drive more business innovation. The company operates in the United States, the United Kingdom, Germany, Denmark, Netherlands, Australia, Canada, France and Singapore.
Executives
Rebecca Jacoby director 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Thomas F Bogan director C/O WORKDAY, INC., 6110 STONERIDGE MALL RD, PLEASANTON CA 94588
John Mcadam director
Peter S Klein director C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Kathleen Philips director 256 30TH AVENUE, SAN FRANCISCO CA 94121
Matthew S Mcilwain director 1000 SECOND AVENUE, SUITE 3700, SEATTLE WA 98104
Rajeev Singh director 6222 185TH AVENUE NE, REDMOND WA 98052
Ravi Mohan director C/O SHASTA VENTURES 2440 SAND HILL ROAD, SUITE 300 MENLO PARK CA 94025
Madrona Venture Fund Iii-a Lp other: Former 10% Owner 1000 SECOND AVE, SUITE 3700, SEATTLE WA 98104
Madrona Venture Fund Iii L P other: Former 10% Owner 1000 SECOND AVE, SUITE 3700, SEATTLE WA 98104
Madrona Investment Partners Iii other: Former 10% Owner 999 THIRD AVE, 34TH FLOOR, SEATTLE WA 98104
Greylock Xii Gp Llc 10 percent owner 2550 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Greylock Xii Limited Partnership 10 percent owner 40 GROVE STREET, SUITE 430, WELLESLEY MA 02482
Greylock Xii-a Limited Partnership 10 percent owner 40 GROVE STREET, SUITE 430, WELLESLEY MA 02482