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Clarivate (Clarivate) ROE % : -53.27% (As of Dec. 2023)


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What is Clarivate ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Clarivate's annualized net income for the quarter that ended in Dec. 2023 was $-3,376 Mil. Clarivate's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $6,337 Mil. Therefore, Clarivate's annualized ROE % for the quarter that ended in Dec. 2023 was -53.27%.

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

CLVT' s ROE % Range Over the Past 10 Years
Min: -42.27   Med: -20.52   Max: -2.58
Current: -13.65

During the past 7 years, Clarivate's highest ROE % was -2.58%. The lowest was -42.27%. And the median was -20.52%.

CLVT's ROE % is ranked worse than
72.27% of 2640 companies
in the Software industry
Industry Median: 3.145 vs CLVT: -13.65

Clarivate ROE % Historical Data

The historical data trend for Clarivate'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.

Clarivate ROE % Chart

Clarivate Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial -22.50 -6.82 -2.58 -42.27 -14.23

Clarivate 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 20.08 2.53 -7.09 0.72 -53.27

Competitive Comparison of Clarivate's ROE %

For the Information Technology Services subindustry, Clarivate'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.


Clarivate's ROE % Distribution in the Software Industry

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

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



Clarivate ROE % Calculation

Clarivate'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 )
=-911.2/( (6812.5+5992.3)/ 2 )
=-911.2/6402.4
=-14.23 %

Clarivate'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 )
=-3375.6/( (6682.1+5992.3)/ 2 )
=-3375.6/6337.2
=-53.27 %

* 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.


Clarivate  (NYSE:CLVT) 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
=-3375.6/6337.2
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-3375.6 / 2734.8)*(2734.8 / 13062.4)*(13062.4 / 6337.2)
=Net Margin %*Asset Turnover*Equity Multiplier
=-123.43 %*0.2094*2.0612
=ROA %*Equity Multiplier
=-25.85 %*2.0612
=-53.27 %

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
=-3375.6/6337.2
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-3375.6 / -3447.6) * (-3447.6 / 379.2) * (379.2 / 2734.8) * (2734.8 / 13062.4) * (13062.4 / 6337.2)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9791 * -9.0918 * 13.87 % * 0.2094 * 2.0612
=-53.27 %

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.


Clarivate ROE % Related Terms

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


Clarivate (Clarivate) Business Description

Traded in Other Exchanges
Address
70 St. Mary Axe, London, GBR, EC3A 8BE
Clarivate PLC is an information, analytics, and workflow solutions company. It operates in three segments: Academia and Government; Life Sciences and Healthcare and Intellectual Property. The company generates maximum revenue from the Academia and Government segment. The A&G segment consists of Academia and Government product group, which drives research excellence across institutions, empower researchers to tackle today's global challenges and help academic institutions and libraries improve operational efficiency and effectiveness. Geographically, it derives a majority of its revenue from the Americas.
Executives
Melanie Margolin officer: Chief Legal Officer 1000 SAGAMORE PARKWAY SOUTH, LAFAYETTE IN 47905
Saurabh Saha director C/O CENTESSA PHARMACEUTICALS PLC, 3RD FLOOR, 1 ASHLEY ROAD, ALTRINCHAM, CHESHIRE X0 WA14 2DT
Henry Levy officer: President, LS&H 70 ST. MARY AXE, LONDON X0 EC3 8BA
Bar Veinstein officer: President, A&G 70 ST. MARY AXE, LONDON X0 EC3 8BA
James Gordon Samson officer: President, IP Group FRIARS HOUSE, 160 BLACKFRIARS ROAD, LONDON X0 SE 1 8EZ
Andrew Miles Snyder director 111 WEST 57TH STREET, 9TH FLOOR, NEW YORK NY 10019
Wendell E. Pritchett director TOLL BROTHERS, INC., 1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
Jonathan Gear director, officer: Chief Executive Officer-Elect C/O IHS MARKIT LTD., 4TH FLOOR, ROPEMAKE, 25 ROPEMAKER STREET, LONDON X0 EC2Y 9LY
Michael M Easton officer: Senior VP, Finance/CAO 4TH FLOOR ROPEMAKER PLACE, 25 ROPEMAKER STREET, LONDON X0 EC2Y 9LY
Stefano Maestri officer: Chief Technology Officer 70 ST MARY AXE, LONDON X0 EC3 8BA
Jonathan Mark Collins officer: Executive Vice President/CFO 50196 VENICE COURT, NORTHVILLE MI 48168
Mukhtar Ahmed officer: President, Science Group FRIARS HOUSE, 160 BLACKFRIARS ROAD, LONDON X0 SEL 8EZ
Michael J Angelakis director 40 MORRIS AVENUE, BRYN MAWR PA 19010
Heather Matzke-hamlin officer: Acting Chief Acctg Officer 4TH FLOOR, ROPEMAKER PLACE, 25 ROPEMAKER STREET, LONDON X0 EC2Y 9LY
Steen Lomholt-thomsen officer: Chief Revenue Officer FRIARS HOUSE, 160 BLACKFRIARS ROAD, LONDON X0 SE1 8EZ