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Block ROE %

: -4.86% (As of Jun. 2022)
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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. Block's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $-832 Mil. Block's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $17,134 Mil. Therefore, Block's annualized ROE % for the quarter that ended in Jun. 2022 was -4.86%.

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

SQ' s ROE % Range Over the Past 10 Years
Min: -70.69   Med: -9.22   Max: 26.48
Current: -5.66

During the past 10 years, Block's highest ROE % was 26.48%. The lowest was -70.69%. And the median was -9.22%.

SQ's ROE % is ranked worse than
63.18% of 2575 companies
in the Software industry
Industry Median: 3.06 vs SQ: -5.66

Block ROE % Historical Data

The historical data trend for Block'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.

Block Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9.22 -4.03 26.48 9.69 5.59

Block Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 32.62 0.01 -9.86 -7.90 -4.86

Competitive Comparison

For the Software - Infrastructure subindustry, Block'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.

   

Block ROE % Distribution

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

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



Block ROE % Calculation

Block's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=166.284/( (2681.569+3272.855)/ 2 )
=166.284/2977.212
=5.59 %

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

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=-832.056/( (17412.822+16855.104)/ 2 )
=-832.056/17133.963
=-4.86 %

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


Block  (NYSE:SQ) 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: Jun. 2022 )
=Net Income/Total Stockholders Equity
=-832.056/17133.963
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-832.056 / 17617.996)*(17617.996 / 29006.3135)*(29006.3135 / 17133.963)
=Net Margin %*Asset Turnover*Equity Multiplier
=-4.72 %*0.6074*1.6929
=ROA %*Equity Multiplier
=-2.87 %*1.6929
=-4.86 %

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: Jun. 2022 )
=Net Income/Total Stockholders Equity
=-832.056/17133.963
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (-832.056 / -831.892) * (-831.892 / -711.248) * (-711.248 / 17617.996) * (17617.996 / 29006.3135) * (29006.3135 / 17133.963)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0002 * 1.1696 * -4.04 % * 0.6074 * 1.6929
=-4.86 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 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.


Block ROE % Related Terms

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


Block Business Description

Block logo
Address
1455 Market Street, Suite 600, San Francisco, CA, USA, 94103
Founded in 2009, Block provides payment acquiring services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. Block has operations in Canada, Japan, Australia, and the United Kingdom; about 5% of revenue is generated outside the U.S.
Executives
Rothstein Sharon director C/O YELP INC. 350 MISSION STREET, 10TH FLOOR SAN FRANCISCO CA 94105
Carter Shawn Corey director C/O S. CARTER ENTERPRISES, LLC 1411 BROADWAY NEW YORK NY 10018
Walker Darren director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Grassadonia Brian officer: Cash App Lead 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Meeker Mary G director 2750 SAND HILL ROAD MENLO PARK CA 94025
Brooks Amy director 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Ahuja Amrita officer: Chief Financial Officer 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Murphy Timothy Hugh officer: Interim CFO & Treasurer C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Daswani Mohit officer: Interim CFO & Treasurer C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Whiteley Sivan officer: Gen. Counsel & Corp. Secretary 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Patterson Anna director C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Rao Naveen G director C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Garutti Randall J director C/O SHAKE SHACK INC. 24 UNION SQUARE EAST, 5TH FLOOR NEW YORK NY 10003
Reses Jacqueline D officer: Capital Lead & People Lead C/O SQUARE, INC. 1455 MARKET STREET #600 SAN FRANCISCO CA 94103
Smith Hillary B officer: Gen. Counsel & Corp. Secretary C/O YEXT, INC 61 NINTH AVENUE NEW YORK NY 10011

Block Headlines

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