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Change Healthcare ROE %

: -2.82% (As of Jun. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Change Healthcare's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $-93 Mil. Change Healthcare's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $3,283 Mil. Therefore, Change Healthcare's annualized ROE % for the quarter that ended in Jun. 2022 was -2.82%.

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

CHNG' s ROE % Range Over the Past 10 Years
Min: -42.9   Med: -3.43   Max: 5.38
Current: -2.36

During the past 6 years, Change Healthcare's highest ROE % was 5.38%. The lowest was -42.90%. And the median was -3.43%.

CHNG's ROE % is ranked worse than
63.34% of 622 companies
in the Healthcare Providers & Services industry
Industry Median: 4.76 vs CHNG: -2.36

Change Healthcare ROE % Historical Data

The historical data trend for Change Healthcare'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.

Change Healthcare Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
ROE %
Premium Member Only 5.38 -4.51 -42.90 -3.43 -1.76

Change Healthcare Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROE % 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 Premium Member Only Premium Member Only -0.44 -4.47 -3.02 0.87 -2.82

Competitive Comparison

For the Health Information Services subindustry, Change Healthcare'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.

   

Change Healthcare ROE % Distribution

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

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



Change Healthcare ROE % Calculation

Change Healthcare's annualized ROE % for the fiscal year that ended in Mar. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Mar. 2022 )/( (Total Stockholders Equity (A: Mar. 2021 )+Total Stockholders Equity (A: Mar. 2022 ))/ count )
=-57.39/( (3252.228+3276.107)/ 2 )
=-57.39/3264.1675
=-1.76 %

Change Healthcare's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=-92.672/( (3276.107+3290.886)/ 2 )
=-92.672/3283.4965
=-2.82 %

* 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 attributable to common stockholders 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 attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Change Healthcare  (NAS:CHNG) 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: Jun. 2022 )
=Net Income/Total Stockholders Equity
=-92.672/3283.4965
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-92.672 / 3537.876)*(3537.876 / 9784.738)*(9784.738 / 3283.4965)
=Net Margin %*Asset Turnover*Equity Multiplier
=-2.62 %*0.3616*2.98
=ROA %*Equity Multiplier
=-0.95 %*2.98
=-2.82 %

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: Jun. 2022 )
=Net Income/Total Stockholders Equity
=-92.672/3283.4965
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (-92.672 / -129.916) * (-129.916 / 121.768) * (121.768 / 3537.876) * (3537.876 / 9784.738) * (9784.738 / 3283.4965)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7133 * -1.0669 * 3.44 % * 0.3616 * 2.98
=-2.82 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders 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.


Change Healthcare ROE % Related Terms

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


Change Healthcare Business Description

Change Healthcare logo
Traded in Other Exchanges
Address
424 Church Street, Suite 1400, Nashville, TN, USA, 37219
Change Healthcare is a spin-off of various healthcare processing and consulting services acquired by McKesson over numerous years. Recently, these processing assets were contributed to a joint venture and in June 2019 public shares were issued with McKesson retaining the majority interest. As of the end of the March 2020 quarter, McKesson distributed all its interest in the public processor. Core services consist of insurance (healthcare) claim clearinghouse for healthcare payers in addition to administrative and consulting services to assist healthcare providers improve reimbursement coding, billing, and collections.
Executives
Byers Tracy officer: SVP and GM, Enterprise Imaging C/O CHANGE HEALTHCARE INC. 424 CHURCH STREET, SUITE 1400 NASHVILLE TN 37219
Domenici Nella director C/O ALLIANCEBERNSTEIN 1345 AVENUE OF THE AMERICAS NEW YORK NY 10105
Martin Steven B. officer: EVP, Enterprise Technology 3055 LEBANON PIKE SUITE 1000 NASHVILLE TN 37214
Mckenzie Diana director METLIFE 200 PARK AVENUE NEW YORK NY 10166
Blackstone Family Investment Partnership Vi L.p. 10 percent owner C/O THE BLACKSTONE GROUP 345 PARK AVENUE NEW YORK NY 10154
O'reilly Roderick H. officer: See Remarks C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214
Bcp Vi Side-by-side Gp L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP 345 PARK AVENUE NEW YORK NY 10154
Mcenery Thomas officer: EVP & Chief Marketing Officer
Simpkins Neil P director C/O BLACKSTONE GROUP 345 PARK AVENUE NEW YORK NY 10154
Whitley-taylor Linda officer: EVP & Chief People Officer AMERIGROUP CORPORATION 4425 CORPORATION LANE VIRGINIA BEACH VA 23462
Roe Phillip W. director 20 BURTON HILLS BOULEVARD SUITE 100 NASHVILLE TN 37215
Joshi Kriten officer: See Remarks C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214
Rareshide Paul officer: SVP, Corporate Controller C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214
Laur Thomas officer: See Remarks C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214
Calhoun August officer: See Remarks C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214

Change Healthcare Headlines

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