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Versus Systems (XCNQ:VS) ROE %

: -60.92% (As of Jun. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Versus Systems's annualized net income for the quarter that ended in Jun. 2023 was C$-12.28 Mil. Versus Systems's average Total Stockholders Equity over the quarter that ended in Jun. 2023 was C$20.16 Mil. Therefore, Versus Systems's annualized ROE % for the quarter that ended in Jun. 2023 was -60.92%.

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

XCNQ:VS' s ROE % Range Over the Past 10 Years
Min: -741.38   Med: -137.18   Max: -89.15
Current: -113.93

During the past 13 years, Versus Systems's highest ROE % was -89.15%. The lowest was -741.38%. And the median was -137.18%.

XCNQ:VS's ROE % is ranked worse than
91.95% of 2670 companies
in the Software industry
Industry Median: 2.38 vs XCNQ:VS: -113.93

Versus Systems ROE % Historical Data

The historical data trend for Versus Systems'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.

Versus Systems Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -91.47 -273.43 -246.13 -133.78 -131.19

Versus Systems Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 -50.21 -70.15 -295.73 -38.36 -60.92

Competitive Comparison

For the Software - Application subindustry, Versus Systems'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.

   

Versus Systems ROE % Distribution

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

* The bar in red indicates where Versus Systems's ROE % falls in comparison to its industry or sector. The grey bar indicates the ROE %'s extreme value range as defined by GuruFocus.



Versus Systems ROE % Calculation

Versus Systems's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=-29.564/( (28.959+16.113)/ 2 )
=-29.564/22.536
=-131.19 %

Versus Systems's annualized ROE % for the quarter that ended in Jun. 2023 is calculated as

ROE %=Net Income (Q: Jun. 2023 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Jun. 2023 ))/ count )
=-12.28/( (21.755+18.557)/ 2 )
=-12.28/20.156
=-60.92 %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.


Versus Systems  (XCNQ:VS) 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. 2023 )
=Net Income/Total Stockholders Equity
=-12.28/20.156
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-12.28 / 0.296)*(0.296 / 14.72)*(14.72 / 20.156)
=Net Margin %*Asset Turnover*Equity Multiplier
=-4148.65 %*0.0201*0.7303
=ROA %*Equity Multiplier
=-83.39 %*0.7303
=-60.92 %

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. 2023 )
=Net Income/Total Stockholders Equity
=-12.28/20.156
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-12.28 / -12.28) * (-12.28 / -11.82) * (-11.82 / 0.296) * (0.296 / 14.72) * (14.72 / 20.156)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 1.0389 * -3993.24 % * 0.0201 * 0.7303
=-60.92 %

Note: The net income data used here is four times the quarterly (Jun. 2023) net income data. The Revenue data used here is four times the quarterly (Jun. 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.


Versus Systems ROE % Related Terms

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


Versus Systems (XCNQ:VS) Business Description

Versus Systems logo
Traded in Other Exchanges
Address
1558 West Hastings Street, Vancouver, BC, CAN, V6G 3J4
Versus Systems Inc is a Canada based company. The company is engaged in the technology sector and is developing a business-to-business software platform that allows video game publishers and developers to offer prize-based matches of their games to their players. The product offerings of the company include Dashboard/Platform In-Game Experience and Versus Gear App.