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ADTN (Adtran Holdings) ROE % : -57.55% (As of Sep. 2024)


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What is Adtran Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Adtran Holdings's annualized net income for the quarter that ended in Sep. 2024 was $-125.0 Mil. Adtran Holdings's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $217.1 Mil. Therefore, Adtran Holdings's annualized ROE % for the quarter that ended in Sep. 2024 was -57.55%.

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

ADTN' s ROE % Range Over the Past 10 Years
Min: -130.55   Med: 0.16   Max: 7.74
Current: -130.55

During the past 13 years, Adtran Holdings's highest ROE % was 7.74%. The lowest was -130.55%. And the median was 0.16%.

ADTN's ROE % is ranked worse than
97.41% of 2390 companies
in the Hardware industry
Industry Median: 4.34 vs ADTN: -130.55

Adtran Holdings ROE % Historical Data

The historical data trend for Adtran Holdings'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.

Adtran Holdings ROE % Chart

Adtran Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.82 0.63 -2.37 -0.31 -34.15

Adtran Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -42.64 -69.44 -302.05 -82.08 -57.55

Competitive Comparison of Adtran Holdings's ROE %

For the Communication Equipment subindustry, Adtran Holdings'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.


Adtran Holdings's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Adtran Holdings's ROE % distribution charts can be found below:

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



Adtran Holdings ROE % Calculation

Adtran Holdings'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 )
=-267.688/( (973.954+593.822)/ 2 )
=-267.688/783.888
=-34.15 %

Adtran Holdings's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=-124.956/( (220.229+213.994)/ 2 )
=-124.956/217.1115
=-57.55 %

* 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 (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Adtran Holdings  (NAS:ADTN) 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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=-124.956/217.1115
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-124.956 / 910.816)*(910.816 / 1281.964)*(1281.964 / 217.1115)
=Net Margin %*Asset Turnover*Equity Multiplier
=-13.72 %*0.7105*5.9046
=ROA %*Equity Multiplier
=-9.75 %*5.9046
=-57.55 %

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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=-124.956/217.1115
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-124.956 / -113.868) * (-113.868 / -95.936) * (-95.936 / 910.816) * (910.816 / 1281.964) * (1281.964 / 217.1115)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0974 * 1.1869 * -10.53 % * 0.7105 * 5.9046
=-57.55 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) 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.


Adtran Holdings ROE % Related Terms

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


Adtran Holdings Business Description

Address
901 Explorer Boulevard, Huntsville, AL, USA, 35806-2807
Adtran Holdings Inc is a provider of networking and communications platforms, software, and services focused on the broadband access market. It operates under two reportable segments: Network Solutions, which includes hardware and software products that enable a digital future that supports the company's Subscriber, Access & Aggregation, and Optical Networking Solutions; and Services & Support Segment which includes network design, implementation, maintenance and cloud-hosted services supporting the company's Subscriber, Access & Aggregation, and Optical Networking Solutions.
Executives
Ulrich Dopfer officer: Chief Financial Officer 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806
Thomas R Stanton officer: Vice President & Gen. Mgr. C/O ADTRAN, 901 EXPLORER BLVD., HUNTSVILLE AL 35806
Gregory James Mccray director 422 HANDEL COURT, WHEATON IL 60187
Wilson James Denson Jr officer: Chief Revenue Officer 901 EXPLORER BLVD, HUNTSVILLE AL 35806
Christoph Glingener officer: CEO of ADVA 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806
Michael Foliano officer: CFO 901 EXPLORER BLVD, HUNTSVILLE AL 35806
Brian Protiva director, officer: CEO of ADVA 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806
James Denson Wilson Jr Chief Revenue Officer
Nikos Theodosopoulos director C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Johanna Hey director 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806
Marc Kimpe officer: SVP, Research & Development 131 HERITAGE LANE, MADISON AL 35758
Ray Harris officer: Chief Information Officer 9811 RITCHIE CT, IJAMSVILLE MD 21754
Balan Nair director 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806
Robert Conger officer: SVP, Technology & Strategy 901 EXPLORER BLVD, HUNTSVILLE AL 35806
Eduard Scheiterer officer: SVP, Research & Development 901 EXPLORER DRIVE, HUNTSVILLE AL 35806