Grab Holdings (Grab Holdings) ROE %

: 3.89% (As of Dec. 2023)

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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Grab Holdings's annualized net income for the quarter that ended in Dec. 2023 was $248 Mil. Grab Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $6,369 Mil. Therefore, Grab Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 3.89%.

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

GRAB' s ROE % Range Over the Past 10 Years
Min: -517.09 Med: -23.48 Max: -6.46
Current: -6.46

During the past 5 years, Grab Holdings's highest ROE % was -6.46%. The lowest was -517.09%. And the median was -23.48%.

GRAB's ROE % is ranked worse than
65.88% of 2641 companies
in the Software industry
Industry Median: 3.17 vs GRAB: -6.46

Grab Holdings ROE % Historical Data

The historical data trend for Grab 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.

Grab Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROE %

-517.09

-23.48

-6.65

Grab Holdings Quarterly Data
	Dec19	Jun20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROE %											-19.87	-14.92	-8.40	-6.26	3.89

Competitive Comparison

For the Software - Application subindustry, Grab 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.

Grab Holdings ROE % Distribution

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

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

Grab Holdings ROE % Calculation

Grab 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 )
	=	-434	/	( (6603	+	6449)	/ 2 )
	=	-434	/	6526
	=	-6.65 %

Grab 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 )
	=	248	/	( (6288	+	6449)	/ 2 )
	=	248	/	6368.5
	=	3.89 %

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.

Grab Holdings (NAS:GRAB) 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
=	248	/	6368.5
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(248 / 2612)	*	(2612 / 8697.5)	*	(8697.5 / 6368.5)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	9.49 %	*	0.3003	*	1.3657
=	ROA %	*	Equity Multiplier
=	2.85 %	*	1.3657
=	3.89 %

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
=	248	/	6368.5
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(248 / 32)	*	(32 / -112)	*	(-112 / 2612)	*	(2612 / 8697.5)	*	(8697.5 / 6368.5)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	7.75	*	-0.2857	*	-4.29 %	*	0.3003	*	1.3657
=	3.89 %

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.

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.

Grab Holdings ROE % Related Terms

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Grab Holdings (Grab Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Grab Holdings Inc (NAS:GRAB) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

A6I:Germany A6I:Germany

Address

3 Media Close, No. 01-03/06, Singapore, SGP, 138498

Website

https://www.grab.com

Founded in 2012, Grab provides ride-sharing services, food and grocery delivery, and financial services (payments, consumer loans, and enterprise offerings) in eight Southeast-Asian countries through its mobile platform. The company partners with merchants and riders, connecting them with consumers while charging commission to both sides. Grab has a leading market share in and derives 89% of its revenue from its core businesses, ride-sharing and food delivery. Singapore and Malaysia contributed 58% of revenue as of end-2021. Grab's main competitors in Southeast Asia are Foodpanda and Gojek, the ride-sharing arm of GoTo. Its financial services business is still in its nascent stage and provides minimal revenue currently. The company now also generates advertising revenue.