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GoodRx Holdings (GoodRx Holdings) ROE % : -12.59% (As of Dec. 2023)


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What is GoodRx Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. GoodRx Holdings's annualized net income for the quarter that ended in Dec. 2023 was $-103.5 Mil. GoodRx Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $821.6 Mil. Therefore, GoodRx Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was -12.59%.

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

GDRX' s ROE % Range Over the Past 10 Years
Min: -3.99   Med: -1.12   Max: Negative Equity
Current: -1.06

During the past 6 years, GoodRx Holdings's highest ROE % was Negative Equity%. The lowest was -3.99%. And the median was -1.12%.

GDRX's ROE % is ranked worse than
62.89% of 609 companies
in the Healthcare Providers & Services industry
Industry Median: 4.12 vs GDRX: -1.06

GoodRx Holdings ROE % Historical Data

The historical data trend for GoodRx Holdings'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.

GoodRx Holdings ROE % Chart

GoodRx Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Negative Equity - -3.27 -3.99 -1.12

GoodRx Holdings Quarterly Data
Dec18 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -0.98 -1.60 27.30 -17.33 -12.59

Competitive Comparison of GoodRx Holdings's ROE %

For the Health Information Services subindustry, GoodRx Holdings'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.


GoodRx Holdings's ROE % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, GoodRx Holdings's ROE % distribution charts can be found below:

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



GoodRx Holdings ROE % Calculation

GoodRx Holdings'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 )
=-8.868/( (814.827+761.958)/ 2 )
=-8.868/788.3925
=-1.12 %

GoodRx Holdings'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 )
=-103.476/( (881.273+761.958)/ 2 )
=-103.476/821.6155
=-12.59 %

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


GoodRx Holdings  (NAS:GDRX) 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
=-103.476/821.6155
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-103.476 / 786.576)*(786.576 / 1648.386)*(1648.386 / 821.6155)
=Net Margin %*Asset Turnover*Equity Multiplier
=-13.16 %*0.4772*2.0063
=ROA %*Equity Multiplier
=-6.28 %*2.0063
=-12.59 %

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
=-103.476/821.6155
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-103.476 / -98.54) * (-98.54 / -73.152) * (-73.152 / 786.576) * (786.576 / 1648.386) * (1648.386 / 821.6155)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0501 * 1.3471 * -9.3 % * 0.4772 * 2.0063
=-12.59 %

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.

* 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.


GoodRx Holdings ROE % Related Terms

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


GoodRx Holdings (GoodRx Holdings) Business Description

Traded in Other Exchanges
N/A
Address
2701 Olympic Boulevard, Santa Monica, CA, USA, 90404
GoodRx Holdings Inc is a consumer-focused digital healthcare platform that aims to lower the cost of healthcare in the United States. It operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and provides access to negotiated prices through codes that can be used to save money on prescriptions across the United States. GoodRx generates revenue from core business from pharmacy benefit managers (PBMs) that manage formularies and prescription transactions including establishing pricing between consumers and pharmacies. It also offers other healthcare products and services, including pharma manufacturer solutions, subscriptions, and telehealth services.
Executives
Scott Wagner officer: Interim Chief Executive Office C/O WILSON SONSINI GOODRICH AND ROSATI, 650 PAGE MILL ROAD, PALO ALTO CA 94304
Raj Beri officer: Chief Operating Officer C/O GOODRX HOLDINGS, INC., 2701 OLYMPIC BOULEVARD, SANTA MONICA CA 90404
Romin Nabiey officer: Chief Accounting Officer C/O GOODRX HOLDINGS, INC., 2701 OLYMPIC BOULEVARD, SANTA MONICA CA 90404
Andrew Slutsky officer: President & Consumer 233 WILSHIRE ROAD, SANTA MONICA CA 90410
Idea Men, Llc 10 percent owner 2701 OLYMPIC BOULEVARD, WEST BUILDING - SUITE 200, SANTA MONICA CA 90404
Karsten Voermann officer: Chief Financial Officer 233 WILSHIRE ROAD, SANTA MONICA CA 90410
Trevor Bezdek director, officer: Co-CEO 233 WILSHIRE ROAD, SANTA MONICA CA 90410
Abdiel Qualified Master Fund Lp 10 percent owner 90 PARK AVENUE, 29TH FLOOR, NEW YORK NY 10016
Douglas Joseph Hirsch director, officer: Co-CEO 233 WILSHIRE ROAD, SANTA MONICA CA 90410
Babak Azad officer: See Remarks 233 WILSHIRE ROAD, SANTA MONICA CA 90410
Bansi Nagji officer: President, Healthcare MCKESSON CORPORATION, 6555 STATE HIGHWAY 161, IRVING TX 75039
Agnes Rey-giraud director
Abdiel Capital Lp 10 percent owner C/O ABDIEL CAPITAL ADVISORS, LP, 90 PARK AVENUE, 29TH FLOOR, NEW YORK NY 10016
Abdiel Capital Advisors, Lp 10 percent owner 90 PARK AVENUE, 29TH FLOOR, NEW YORK NY 10016
Abdiel Capital Management, Llc 10 percent owner 90 PARK AVENUE, 29TH FLOOR, NEW YORK NY 10016