GURUFOCUS.COM » STOCK LIST » USA » NYSE » Snowflake Inc (NYSE:SNOW) » Definitions » ROE %
Switch to:

Snowflake ROE %

: -12.62% (As of Apr. 2022)
View and export this data going back to 2020. Start your Free Trial

ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Snowflake's annualized net income attributable to common stockholders for the quarter that ended in Apr. 2022 was $-663 Mil. Snowflake's average Total Stockholders Equity over the quarter that ended in Apr. 2022 was $5,254 Mil. Therefore, Snowflake's annualized ROE % for the quarter that ended in Apr. 2022 was -12.62%.

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

SNOW' s ROE % Range Over the Past 10 Years
Min: -24.55   Med: -19.09   Max: -12.63
Current: -12.63

During the past 4 years, Snowflake's highest ROE % was -12.63%. The lowest was -24.55%. And the median was -19.09%.

SNOW's ROE % is ranked worse than
68.98% of 2576 companies
in the Software industry
Industry Median: 3.07 vs SNOW: -12.63

Snowflake ROE % Historical Data

The historical data trend for Snowflake'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.

Snowflake Annual Data
Trend Jan19 Jan20 Jan21 Jan22
ROE %
- - -24.55 -13.62

Snowflake Quarterly Data
Jan19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -16.43 -15.29 -12.42 -10.51 -12.62

Competitive Comparison

For the Software - Application subindustry, Snowflake'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.

   

Snowflake ROE % Distribution

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

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



Snowflake ROE % Calculation

Snowflake's annualized ROE % for the fiscal year that ended in Jan. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Jan. 2022 )/( (Total Stockholders Equity (A: Jan. 2021 )+Total Stockholders Equity (A: Jan. 2022 ))/ count )
=-679.948/( (4936.471+5049.045)/ 2 )
=-679.948/4992.758
=-13.62 %

Snowflake's annualized ROE % for the quarter that ended in Apr. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Apr. 2022 )/( (Total Stockholders Equity (Q: Jan. 2022 )+Total Stockholders Equity (Q: Apr. 2022 ))/ count )
=-663.176/( (5049.045+5457.994)/ 2 )
=-663.176/5253.5195
=-12.62 %

* 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 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 (Apr. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Snowflake  (NYSE:SNOW) 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: Apr. 2022 )
=Net Income/Total Stockholders Equity
=-663.176/5253.5195
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-663.176 / 1689.484)*(1689.484 / 6836.1985)*(6836.1985 / 5253.5195)
=Net Margin %*Asset Turnover*Equity Multiplier
=-39.25 %*0.2471*1.3013
=ROA %*Equity Multiplier
=-9.7 %*1.3013
=-12.62 %

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: Apr. 2022 )
=Net Income/Total Stockholders Equity
=-663.176/5253.5195
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (-663.176 / -769.952) * (-769.952 / -755.064) * (-755.064 / 1689.484) * (1689.484 / 6836.1985) * (6836.1985 / 5253.5195)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8613 * 1.0197 * -44.69 % * 0.2471 * 1.3013
=-12.62 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Apr. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Apr. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** 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.


Snowflake ROE % Related Terms

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


Snowflake Business Description

Snowflake logo
Address
450 Concar Drive, San Mateo, CA, USA, 94402
Founded in 2012, Snowflake is a data lake, warehousing, and sharing company that came public in 2020. To date, the company has over 3,000 customers including nearly 30% of the Fortune 500 as its customers. Snowflake's data lake stores unstructured and semistructured data that can then be used in analytics to create insights stored in its data warehouse. Snowflake's data sharing capability allows enterprises to easily buy and ingest data almost instantaneously compared with a traditionally months-long process. Overall, the company is known for the fact that all of its data solutions that can be hosted on various public clouds.
Executives
Sequoia Grove Ii, Llc 10 percent owner SEQUOIA CAPITAL 2800 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Sequoia Grove Manager, Llc 10 percent owner SEQUOIA CAPITAL 2800 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Sequoia Capital Growth Fund Iii 10 percent owner 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Iconiq Strategic Partners V Tt Gp, Ltd. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111
Iconiq Strategic Partners V Gp, L.p. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111
Altimeter Capital Management General Partner, Llc 10 percent owner ONE INTERNATIONAL PLACE SUITE 4610 BOSTON MA 02110
Iconiq Strategic Partners V-b, L.p. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111
Iconiq Strategic Partners V, L.p. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Iconiq Strategic Partners Iii, L.p. 10 percent owner 394 PACIFIC AVENUE, 2ND FLOOR SAN FRANCISCO CA 94111
Jacobson Matthew 10 percent owner C/O DATADOG, INC. 45TH FLOOR NEW YORK NY 10001
Iconiq Strategic Partners Iii-b, L.p. 10 percent owner 394 PACIFIC AVENUE, 2ND FLOOR SAN FRANCISCO CA 94111
Iconiq Strategic Partners Iii Gp, L.p. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111
Iconiq Strategic Partners Iii Tt Gp, Ltd. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111

Snowflake Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)