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Insight Enterprises (Insight Enterprises) ROE % : 21.56% (As of Dec. 2023)


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What is Insight Enterprises ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Insight Enterprises's annualized net income for the quarter that ended in Dec. 2023 was $362 Mil. Insight Enterprises's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,681 Mil. Therefore, Insight Enterprises's annualized ROE % for the quarter that ended in Dec. 2023 was 21.56%.

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

NSIT' s ROE % Range Over the Past 10 Years
Min: 10.53   Med: 14.33   Max: 17.88
Current: 17.27

During the past 13 years, Insight Enterprises's highest ROE % was 17.88%. The lowest was 10.53%. And the median was 14.33%.

NSIT's ROE % is ranked better than
87.65% of 2412 companies
in the Hardware industry
Industry Median: 4.76 vs NSIT: 17.27

Insight Enterprises ROE % Historical Data

The historical data trend for Insight Enterprises'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.

Insight Enterprises ROE % Chart

Insight Enterprises Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.85 13.80 15.38 17.83 16.68

Insight Enterprises Quarterly Data
Mar19 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 19.02 12.45 20.49 15.09 21.56

Competitive Comparison of Insight Enterprises's ROE %

For the Electronics & Computer Distribution subindustry, Insight Enterprises'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.


Insight Enterprises's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Insight Enterprises's ROE % distribution charts can be found below:

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



Insight Enterprises ROE % Calculation

Insight Enterprises'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 )
=281.309/( (1638.068+1735.733)/ 2 )
=281.309/1686.9005
=16.68 %

Insight Enterprises'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 )
=362.432/( (1626.048+1735.733)/ 2 )
=362.432/1680.8905
=21.56 %

* 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.


Insight Enterprises  (NAS:NSIT) 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
=362.432/1680.8905
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(362.432 / 8944.044)*(8944.044 / 5682.283)*(5682.283 / 1680.8905)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.05 %*1.574*3.3805
=ROA %*Equity Multiplier
=6.37 %*3.3805
=21.56 %

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
=362.432/1680.8905
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (362.432 / 488.7) * (488.7 / 551.776) * (551.776 / 8944.044) * (8944.044 / 5682.283) * (5682.283 / 1680.8905)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7416 * 0.8857 * 6.17 % * 1.574 * 3.3805
=21.56 %

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.


Insight Enterprises ROE % Related Terms

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


Insight Enterprises (Insight Enterprises) Business Description

Traded in Other Exchanges
Address
2701 E. Insight Way, Chandler, AZ, USA, 85286
Insight Enterprises Inc is a Fortune 500 global IT provider primarily engaged in helping businesses of all sizes, large enterprises, governments, schools, and health care organizations. The company has three geographic operating segments: North America, EMEA, and APAC. It generates maximum revenue from North America segment. The company provides digital innovation, cloud/data center transformation, connected workforce, and supply chain optimization solutions and services.
Executives
Valueact Capital Master Fund, L.p. director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Samuel C Cowley officer: SVP, Gen'l Counsel & Secretary 2200 SOUTH 75TH AVENUE, PHOENIX AZ 85043
Timothy A Crown director, officer: CEO, President 6820 S HARL AVE, TEMPE AZ 85283
Adrian P Gregory officer: President, EMEA 2701 E INSIGHT WAY, CHANDLER AZ 85286
Rachael A Bertrandt officer: Principal Accounting Officer INSIGHT ENTEPRISES, INC., 2701 E INSIGHT WAY, CHANDLER AZ 85286
Glynis Bryan officer: CFO 5500 WAYZATA BOULEVARD, SUITE 600, GOLDEN VALLEY MN 55416
Kathleen S Pushor director 8575 E VOLTAIRE AVE, SCOTTSDALE AZ 85260
Daniel Burger officer: President INA 6820 S HARL AVENUE, TEMPE AZ 85283
Sumana Nallapati officer: Chief Information Officer 6820 S HARL AVENUE, TEMPE AZ 85283
Jennifer M Vasin officer: Chief Human Resources Officer 2701 E INSIGHT WAY, CHANDLER AZ 85286
Valueact Capital Management, Llc director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Alexander L. Baum director ONE LETTERMAN DRIVE, BUILDING D, FOURTH FLOOR, SAN FRANCISCO CA 94129
Valueact Capital Management, L.p. director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Valueact Holdings, L.p. director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Valueact Holdings Gp, Llc director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129