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Ellie Mae (Ellie Mae) ROE % : 0.04% (As of Dec. 2018)


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What is Ellie Mae ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ellie Mae's annualized net income for the quarter that ended in Dec. 2018 was $0.3 Mil. Ellie Mae's average Total Stockholders Equity over the quarter that ended in Dec. 2018 was $799.0 Mil. Therefore, Ellie Mae's annualized ROE % for the quarter that ended in Dec. 2018 was 0.04%.

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

ELLI's ROE % is not ranked *
in the Software industry.
Industry Median: 3.06
* Ranked among companies with meaningful ROE % only.

Ellie Mae ROE % Historical Data

The historical data trend for Ellie Mae'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.

Ellie Mae ROE % Chart

Ellie Mae Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.43 8.19 7.99 7.60 2.93

Ellie Mae Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
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 5.35 1.18 4.96 6.33 0.04

Competitive Comparison of Ellie Mae's ROE %

For the Software - Application subindustry, Ellie Mae'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.


Ellie Mae's ROE % Distribution in the Software Industry

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

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



Ellie Mae ROE % Calculation

Ellie Mae's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=22.575/( (735.339+804.069)/ 2 )
=22.575/769.704
=2.93 %

Ellie Mae's annualized ROE % for the quarter that ended in Dec. 2018 is calculated as

ROE %=Net Income (Q: Dec. 2018 )/( (Total Stockholders Equity (Q: Sep. 2018 )+Total Stockholders Equity (Q: Dec. 2018 ))/ count )
=0.336/( (793.983+804.069)/ 2 )
=0.336/799.026
=0.04 %

* 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 (Dec. 2018) net income data. ROE % is displayed in the 30-year financial page.


Ellie Mae  (NYSE:ELLI) 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. 2018 )
=Net Income/Total Stockholders Equity
=0.336/799.026
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.336 / 464.184)*(464.184 / 900.97)*(900.97 / 799.026)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.07 %*0.5152*1.1276
=ROA %*Equity Multiplier
=0.04 %*1.1276
=0.04 %

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. 2018 )
=Net Income/Total Stockholders Equity
=0.336/799.026
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.336 / 1.656) * (1.656 / -2.62) * (-2.62 / 464.184) * (464.184 / 900.97) * (900.97 / 799.026)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.2029 * -0.6321 * -0.56 % * 0.5152 * 1.1276
=0.04 %

Note: The net income data used here is four times the quarterly (Dec. 2018) net income data. The Revenue data used here is four times the quarterly (Dec. 2018) 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.


Ellie Mae ROE % Related Terms

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


Ellie Mae (Ellie Mae) Business Description

Traded in Other Exchanges
N/A
Address
4420 Rosewood Drive, Suite 500, Pleasanton, CA, USA, 94588
Ellie Mae Inc is a provider of on-demand software solutions and services for the residential mortgage industry. Its solutions provide a system to allow banks, credit unions, and mortgage lenders to originate and fund mortgages. The company's solutions include customer relationship management, loan processing, underwriting, compliance, and overall enterprise management capabilities. The company derives revenue from transaction-based fees and subscription fees to its Software-as-a-Service solutions, which are typically sold on an annual basis. All of the firm's revenue is generated in the United States.
Executives
Rajat Taneja director C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PARKWAY, LEGAL DEPT., REDWOOD CITY CA 94065
Marina Levinson director C/O ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, SUITE 500, PLEASANTON CA 94588
Robert J Levin director ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, SUITE 500, PLEASANTON CA 94588
A Barr Dolan director ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, SUITE 500, PLEASANTON CA 94588
Karen Blasing director 4420 ROSEWOOD DRIVE, SUITE 500, PLEASANTON CA 94588
Peter Hirsch officer: EVP, Technology & Operations C/O ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, PLEASANTON CA 94588
Alan S. Henricks director MODEL N, INC., 777 MARINERS ISLAND BLVD., SUITE 300, SAN MATEO CA 94404
First American Corp 10 percent owner 40 PACIFICA, SUITE 900, IRVINE CA 92618
Alta Embarcadero Partners Ii Llc 10 percent owner ONE EMBARCADERO CENTER, SUITE 3700, SAN FRANCISCO CA 94111
Alta California Management Partners Ii Llc 10 percent owner ONE EMBARCADERO CENTER, SUITE 3700, SAN FRANCISCO CA 94111
Garrett Gruener 10 percent owner ONE EMBARCADERO CENTER, SUITE 3700, SAN FRANCISCO CA 94111
Alta California Partners Ii Lp 10 percent owner ONE EMBARCADERO CENTER, SUITE 3700, SAN FRANCISCO CA 94111
Cmc Master Fund, L.p. 10 percent owner 525 UNIVERSITY AVENUE, SUITE 1400, PALO ALTO CA 94301
C.m. Capital Corp 10 percent owner 525 UNIVERSITY AVENUE, SUITE 1400, PALO ALTO CA 94301
C.m. Capital Advisors, Llc 10 percent owner 525 UNIVERSITY AVENUE, SUITE 1400, PALO ALTO CA 94301

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