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Total System Services (Total System Services) ROE % : 26.86% (As of Jun. 2019)


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What is Total System Services ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Total System Services's annualized net income for the quarter that ended in Jun. 2019 was $651 Mil. Total System Services's average Total Stockholders Equity over the quarter that ended in Jun. 2019 was $2,424 Mil. Therefore, Total System Services's annualized ROE % for the quarter that ended in Jun. 2019 was 26.86%.

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

TSS's ROE % is not ranked *
in the Software industry.
Industry Median: 3.145
* Ranked among companies with meaningful ROE % only.

Total System Services ROE % Historical Data

The historical data trend for Total System Services'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.

Total System Services ROE % Chart

Total System Services Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.72 20.59 16.21 27.01 23.89

Total System Services Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 23.27 24.27 20.88 26.18 26.86

Competitive Comparison of Total System Services's ROE %

For the Software - Infrastructure subindustry, Total System Services'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.


Total System Services's ROE % Distribution in the Software Industry

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

* The bar in red indicates where Total System Services's ROE % falls into.



Total System Services ROE % Calculation

Total System Services's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=576.656/( (2240.993+2585.906)/ 2 )
=576.656/2413.4495
=23.89 %

Total System Services's annualized ROE % for the quarter that ended in Jun. 2019 is calculated as

ROE %=Net Income (Q: Jun. 2019 )/( (Total Stockholders Equity (Q: Mar. 2019 )+Total Stockholders Equity (Q: Jun. 2019 ))/ count )
=651.04/( (2352.76+2494.594)/ 2 )
=651.04/2423.677
=26.86 %

* 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 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 (Jun. 2019) net income data. ROE % is displayed in the 30-year financial page.


Total System Services  (NYSE:TSS) 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. 2019 )
=Net Income/Total Stockholders Equity
=651.04/2423.677
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(651.04 / 4141.94)*(4141.94 / 7740.469)*(7740.469 / 2423.677)
=Net Margin %*Asset Turnover*Equity Multiplier
=15.72 %*0.5351*3.1937
=ROA %*Equity Multiplier
=8.41 %*3.1937
=26.86 %

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. 2019 )
=Net Income/Total Stockholders Equity
=651.04/2423.677
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (651.04 / 726.684) * (726.684 / 876.348) * (876.348 / 4141.94) * (4141.94 / 7740.469) * (7740.469 / 2423.677)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8959 * 0.8292 * 21.16 % * 0.5351 * 3.1937
=26.86 %

Note: The net income data used here is four times the quarterly (Jun. 2019) net income data. The Revenue data used here is four times the quarterly (Jun. 2019) 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.


Total System Services ROE % Related Terms

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


Total System Services (Total System Services) Business Description

Traded in Other Exchanges
N/A
Address
One TSYS Way, Columbus, GA, USA, 31901-4222
Total System Services Inc based in Columbus, Georgia, provides payment-processing services in the U.S. and abroad. In 2013 TSYS provided processing services for 28% of domestic consumer credit card accounts and 59% of domestic commercial credit card accounts. The company has operating segments in North America Services, International Services, and Merchant Services, plus the newer NetSpend segment, which deals in prepaid debit and payroll cards and arrived via a 2013 acquisition.
Executives
Kriss Iii Cloninger director 1932 WYNNTON ROAD, COLUMBUS GA 31999
Driver Walter W Jr director ONE TSYS WAY, COLUMBUS GA 31901
Joia M Johnson director C/O HANESBRANDS INC., 1000 EAST HANES MILL ROAD, WINSTON SALEM NC 27105
F. Thaddeus Arroyo director 208 S. AKARD, DALLAS TX 75202
Sidney E Harris director C/O VIRTUS INVESTMENT PARTNERS, INC., ONE FINANCIAL PLAZA, 26TH FL., HARTFORD CT 06103
Mcdaniel Connie D director C/O VIRTUS INVESTMENT PARTNERS, INC., ONE FINANCIAL PLAZA, 26TH FL., HARTFORD CT 06103
John Thompson Turner director ONE TSYS WAY, COLUMBUS GA 31901
M Troy Woods director, officer: Chairman and CEO ONE TSYS WAY, COLUMBUS GA 31901
Paul M Todd officer: Sr. EVP and CFO ONE TSYS WAY, B-4, COLUMBUS GA 31901
Patricia A Watson officer: Senior EVP and CIO TOTAL SYSTEM SERVICES, INC., ONE TSYS WAY, COLUMBUS GA 31901
Richard A Smith director 175 PARK AVENUE, MADISON NJ 07940
Griffith G Sanders Iii officer: Sr. EVP, Gen. Counsel, Sec. ONE TSYS WAY, COLUMBUS GA 31901
Mason H Lampton director ONE TSYS WAY, C-1, COLUMBUS GA 31901
Philip W Tomlinson director ONE TSYS WAY, COLUMBUS GA 31901
William M Isaac director C/O ASSOCIATES FIRST CAPITAL CORP, 250 E CARPENTER FREEWAY, IRVING TX 75062

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