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Olo (OLO) ROE %

: -9.55% (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. Olo's annualized net income for the quarter that ended in Dec. 2023 was $-63.0 Mil. Olo's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $659.4 Mil. Therefore, Olo's annualized ROE % for the quarter that ended in Dec. 2023 was -9.55%.

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

OLO' s ROE % Range Over the Past 10 Years
Min: -13.02   Med: -7.61   Max: Negative Equity
Current: -8.64

During the past 6 years, Olo's highest ROE % was Negative Equity%. The lowest was -13.02%. And the median was -7.61%.

OLO's ROE % is ranked worse than
67.74% of 2641 companies
in the Software industry
Industry Median: 3.17 vs OLO: -8.64

Olo ROE % Historical Data

The historical data trend for Olo'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.

Olo Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only - Negative Equity -13.02 -6.57 -8.64

Olo Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -4.67 -7.95 -10.08 -7.01 -9.55

Competitive Comparison

For the Software - Application subindustry, Olo'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.


Olo ROE % Distribution

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

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



Olo ROE % Calculation

Olo'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 )
=-58.287/( (697.616+651.471)/ 2 )
=-58.287/674.5435
=-8.64 %

Olo'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 )
=-62.984/( (667.399+651.471)/ 2 )
=-62.984/659.435
=-9.55 %

* 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.


Olo  (NYSE:OLO) 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
=-62.984/659.435
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-62.984 / 252.016)*(252.016 / 744.953)*(744.953 / 659.435)
=Net Margin %*Asset Turnover*Equity Multiplier
=-24.99 %*0.3383*1.1297
=ROA %*Equity Multiplier
=-8.45 %*1.1297
=-9.55 %

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
=-62.984/659.435
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-62.984 / -62.196) * (-62.196 / -82.136) * (-82.136 / 252.016) * (252.016 / 744.953) * (744.953 / 659.435)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0127 * 0.7572 * -32.59 % * 0.3383 * 1.1297
=-9.55 %

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.


Olo ROE % Related Terms

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


Olo (OLO) Business Description

Traded in Other Exchanges
N/A
Address
99 Hudson Street, 10th Floor, New York, NY, USA, 10013
Olo inc is an open Software as a Service platform for restaurants. Its platform powers restaurant brands' on-demand digital commerce operations, enabling digital ordering, delivery, front-of-house management, and payments, while further strengthening and enhancing restaurants' direct guest relationships. The company generates revenue from providing its customers access to its platform.
Executives
Joanna G Lambert officer: Chief Operating Officer C/O OLO INC., 99 HUDSON STREET, 10TH FLOOR, NEW YORK NY 10013
Robert Morvillo officer: General Counsel and Secretary C/O OLO INC., 99 HUDSON STREET, FLOOR 10, NEW YORK NY 10013
Sherri Manning officer: Chief People Officer 99 HUDSON STREET, 10TH FLOOR, NEW YORK NY 10013
Diego Panama officer: Chief Revenue Officer C/O OLO INC., 99 HUDSON STREET, 10TH FLOOR, NEW YORK NY 10013
Noah H. Glass director, officer: CEO C/O OLO INC., 99 HUDSON STREET, 10TH FLOOR, NEW YORK NY 10013
Peter J. Benevides officer: Chief Financial Officer C/O OLO INC., 99 HUDSON STREET, 10TH FLOOR, NEW YORK NY 10013
Zuhairah Scott Washington director C/O FIVE BELOW, INC., 701 MARKET STREET, SUITE 300, PHILADELPHIA PA 19106
Lee Kirkpatrick director TWILIO INC, 645 HARRISON STREET THIRD FLOOR, SAN FRANCISCO CA 94107
Nithya B. Das officer: COO and Chief Legal Officer C/O OLO INC., 99 HUDSON STREET, 10TH FLOOR, NEW YORK NY 10013
Daniel Harris Meyer director 24 UNION SQUARE EAST, SIXTH FLOOR, NEW YORK NY 10003
Marty D. Hahnfeld officer: Chief Customer Officer C/O OLO INC., ONE WORLD TRADE CENTER, 82ND FLOOR, NEW YORK NY 10007
Neville Colin director C/O FOREST ROAD ACQUISITION CORP., 1177 AVENUE OF THE AMERICAS, 5TH FLOOR, NEW YORK NY 10036
Russell N. Jones director C/O OLO INC., ONE WORLD TRADE CENTER, 82ND FLOOR, NEW YORK NY 10007
David A. Frankel director, 10 percent owner 1 MIFFLIN PLACE SUITE 300, CAMBRIDGE MA 02138
Linda Rottenberg director 1805 29TH ST, STE 2050, BOULDER CO 80302