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NetApp ROE %

: 117.11% (As of Jul. 2020)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus the preferred dividends paid) divided by its average Total Stockholders Equity over a certain period of time. NetApp's annualized net income attributable to common stockholders for the quarter that ended in Jul. 2020 was USD308 Mil. NetApp's average Total Stockholders Equity over the quarter that ended in Jul. 2020 was USD263 Mil. Therefore, NetApp's annualized ROE % for the quarter that ended in Jul. 2020 was 117.11%.

NAS:NTAP' s ROE % Range Over the Past 10 Years
Min: 4.59   Med: 15.28   Max: 179.66
Current: 179.66

4.59
179.66

During the past 13 years, NetApp's highest ROE % was 179.66%. The lowest was 4.59%. And the median was 15.28%.

NAS:NTAP's ROE % is ranked higher than
100% of the 2241 Companies
in the Hardware industry.

( Industry Median: 4.38 vs. NAS:NTAP: 179.66 )

NetApp ROE % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

NetApp Annual Data
Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.28 16.99 4.59 69.46 122.97

NetApp Quarterly Data
Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
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 Premium Member Only 42.19 138.96 270.90 299.24 117.11

Competitive Comparison
* 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.


NetApp ROE % Distribution

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



NetApp ROE % Calculation

NetApp's annualized ROE % for the fiscal year that ended in Apr. 2020 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Apr. 2020 )/( (Total Stockholders Equity (A: Apr. 2019 )+Total Stockholders Equity (A: Apr. 2020 ))/ count )
=819/( (1090+242)/ 2 )
=819/666
=122.97 %

NetApp's annualized ROE % for the quarter that ended in Jul. 2020 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jul. 2020 )/( (Total Stockholders Equity (Q: Apr. 2020 )+Total Stockholders Equity (Q: Jul. 2020 ))/ count )
=308/( (242+284)/ 2 )
=308/263
=117.11 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 (Jul. 2020) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


NetApp  (NAS:NTAP) 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. 2020 )
=Net Income/Total Stockholders Equity
=308/263
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(308 / 5212)*(5212 / 7969)*(7969 / 263)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.91 %*0.654*30.3004
=ROA %*Equity Multiplier
=3.87 %*30.3004
=117.11 %

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. 2020 )
=Net Income/Total Stockholders Equity
=308/263
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (308 / 416) * (416 / 596) * (596 / 5212) * (5212 / 7969) * (7969 / 263)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7404 * 0.698 * 11.44 % * 0.654 * 30.3004
=117.11 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jul. 2020) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jul. 2020) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


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