Ventia Services Group (ASX:VNT) ROE % : 36.53% (As of Dec. 2023)

View and export this data going back to 2021. Start your Free Trial

What is Ventia Services Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ventia Services Group's annualized net income for the quarter that ended in Dec. 2023 was A$203 Mil. Ventia Services Group's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was A$556 Mil. Therefore, Ventia Services Group's annualized ROE % for the quarter that ended in Dec. 2023 was 36.53%.

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

ASX:VNT' s ROE % Range Over the Past 10 Years
Min: 4.99 Med: 34.79 Max: 41.96
Current: 34.89

During the past 3 years, Ventia Services Group's highest ROE % was 41.96%. The lowest was 4.99%. And the median was 34.79%.

ASX:VNT's ROE % is ranked better than
94.76% of 1623 companies
in the Construction industry
Industry Median: 6.73 vs ASX:VNT: 34.89

Ventia Services Group ROE % Historical Data

The historical data trend for Ventia Services Group'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.

Ventia Services Group ROE % Chart

Ventia Services Group Annual Data

Trend

Dec21

Dec22

Dec23

ROE %

4.99

41.96

34.79

Ventia Services Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
ROE %	-	47.42	33.93	33.26	36.53

Competitive Comparison of Ventia Services Group's ROE %

For the Infrastructure Operations subindustry, Ventia Services Group'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.

Ventia Services Group's ROE % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ventia Services Group's ROE % distribution charts can be found below:

* The bar in red indicates where Ventia Services Group's ROE % falls into.

Ventia Services Group ROE % Calculation

Ventia Services Group'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 )
	=	189.8	/	( (520.9	+	570.2)	/ 2 )
	=	189.8	/	545.55
	=	34.79 %

Ventia Services Group's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %	=	Net Income (Q: Dec. 2023 )	/	( (Total Stockholders Equity (Q: Jun. 2023 )	+	Total Stockholders Equity (Q: Dec. 2023 ))	/ count )
	=	203	/	( (541.1	+	570.2)	/ 2 )
	=	203	/	555.65
	=	36.53 %

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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.

Ventia Services Group (ASX:VNT) 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
=	203	/	555.65
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(203 / 5779.2)	*	(5779.2 / 2962.8)	*	(2962.8 / 555.65)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	3.51 %	*	1.9506	*	5.3321
=	ROA %	*	Equity Multiplier
=	6.85 %	*	5.3321
=	36.53 %

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
=	203	/	555.65
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(203 / 289.2)	*	(289.2 / 330.4)	*	(330.4 / 5779.2)	*	(5779.2 / 2962.8)	*	(2962.8 / 555.65)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.7019	*	0.8753	*	5.72 %	*	1.9506	*	5.3321
=	36.53 %

Note: The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.

Ventia Services Group ROE % Related Terms

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

Ventia Services Group (ASX:VNT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ventia Services Group Ltd (ASX:VNT) » Definitions » ROE %

Traded in Other Exchanges

VNT:New Zealand

Address

80 Pacific Highway, Level 8, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.ventia.com

While Ventia is not the largest player with an estimated 7.5% share of addressable markets, it is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.