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Medallia (Medallia) ROE % : -67.51% (As of Jul. 2021)


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What is Medallia ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Medallia's annualized net income for the quarter that ended in Jul. 2021 was $-250.0 Mil. Medallia's average Total Stockholders Equity over the quarter that ended in Jul. 2021 was $370.2 Mil. Therefore, Medallia's annualized ROE % for the quarter that ended in Jul. 2021 was -67.51%.

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

MDLA's ROE % is not ranked *
in the Software industry.
Industry Median: 3.17
* Ranked among companies with meaningful ROE % only.

Medallia ROE % Historical Data

The historical data trend for Medallia'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.

Medallia ROE % Chart

Medallia Annual Data
Trend Jan18 Jan19 Jan20 Jan21
ROE %
-200.70 -577.10 -57.42 -32.81

Medallia Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
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 -32.76 -27.18 -38.30 -47.01 -67.51

Competitive Comparison of Medallia's ROE %

For the Software - Application subindustry, Medallia'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.


Medallia's ROE % Distribution in the Software Industry

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

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



Medallia ROE % Calculation

Medallia's annualized ROE % for the fiscal year that ended in Jan. 2021 is calculated as

ROE %=Net Income (A: Jan. 2021 )/( (Total Stockholders Equity (A: Jan. 2020 )+Total Stockholders Equity (A: Jan. 2021 ))/ count )
=-148.656/( (397.796+508.241)/ 2 )
=-148.656/453.0185
=-32.81 %

Medallia's annualized ROE % for the quarter that ended in Jul. 2021 is calculated as

ROE %=Net Income (Q: Jul. 2021 )/( (Total Stockholders Equity (Q: Apr. 2021 )+Total Stockholders Equity (Q: Jul. 2021 ))/ count )
=-249.96/( (383.761+356.73)/ 2 )
=-249.96/370.2455
=-67.51 %

* 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 (Jul. 2021) net income data. ROE % is displayed in the 30-year financial page.


Medallia  (NYSE:MDLA) 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: Jul. 2021 )
=Net Income/Total Stockholders Equity
=-249.96/370.2455
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-249.96 / 576.432)*(576.432 / 1361.003)*(1361.003 / 370.2455)
=Net Margin %*Asset Turnover*Equity Multiplier
=-43.36 %*0.4235*3.6759
=ROA %*Equity Multiplier
=-18.36 %*3.6759
=-67.51 %

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: Jul. 2021 )
=Net Income/Total Stockholders Equity
=-249.96/370.2455
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-249.96 / -246.212) * (-246.212 / -239.348) * (-239.348 / 576.432) * (576.432 / 1361.003) * (1361.003 / 370.2455)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0152 * 1.0287 * -41.52 % * 0.4235 * 3.6759
=-67.51 %

Note: The net income data used here is four times the quarterly (Jul. 2021) net income data. The Revenue data used here is four times the quarterly (Jul. 2021) 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.


Medallia ROE % Related Terms

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


Medallia (Medallia) Business Description

Traded in Other Exchanges
N/A
Address
575 Market Street, Suite 1850, San Francisco, CA, USA, 94105
Medallia Inc is a software company. Its SaaS platform, the Medallia Experience Cloud, captures experience data from signal fields emitted by customers and employees. It utilizes AI technology to analyze structured and unstructured data from these signal fields across human, digital and internet of things, or IoT, interactions. The company provides solutions to various industries including Automotive, Healthcare, Hospitality, Insurance, and Retail among others.
Executives
Borge Hald director C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Leslie Stretch director, officer: President & CEO 4140 DUBLIN BLVD SUITE 400 DUBLIN CA 94568
Mikael J Ottosson officer: EVP & Chief Technology Officer C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Roxanne Oulman officer: CFO and EVP 4140 DUBLIN BOULEVARD, SUITE 400, DUBLIN CA 94568
Jimmy C. Duan officer: EVP & Chief Customer Officer 4140 DUBLIN BLVD SUITE 400 DUBLIN CA 94568
Stanley J Meresman director 2071 HUNTINGTON LANE, LOS ALTOS CA 94024
Steven Walske director C/O PARAMETRIC TECHNOLOGY CORP, 128 TECHNOLOGY DR, WALTHAM MA 02154
Amy E Pressman director C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
James D White director C/O CAVA GROUP, INC., 202-400-2920 14 RIDGE SQUARE NW, SUITE 5, WASHINGTON DC 20016
Mitchell K Dauerman director
Robert Bernshteyn director C/O SUCCESSFACTORS, INC., 1500 FASHION, ISLAND BLVD., SUITE 300, SAN MATEO CA 94404
Douglas M Leone director, 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Leslie J Kilgore director 121 ALBRIGHT WAY, LOS GATOS CA 95032
Sc Us Ssf 2013 (ttgp), L.l.c. 10 percent owner 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Scggf Management, L.p. 10 percent owner 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025