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Apptio (Apptio) ROE % : -11.88% (As of Sep. 2018)


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What is Apptio ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Apptio's annualized net income for the quarter that ended in Sep. 2018 was $-18.3 Mil. Apptio's average Total Stockholders Equity over the quarter that ended in Sep. 2018 was $153.9 Mil. Therefore, Apptio's annualized ROE % for the quarter that ended in Sep. 2018 was -11.88%.

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

APTI's ROE % is not ranked *
in the Software industry.
Industry Median: 3.06
* Ranked among companies with meaningful ROE % only.

Apptio ROE % Historical Data

The historical data trend for Apptio'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.

Apptio ROE % Chart

Apptio Annual Data
Trend Dec14 Dec15 Dec16 Dec17
ROE %
- - - -32.06

Apptio Quarterly Data
Dec14 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 -22.12 -36.39 -28.16 -14.47 -11.88

Competitive Comparison of Apptio's ROE %

For the Software - Application subindustry, Apptio'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.


Apptio's ROE % Distribution in the Software Industry

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

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



Apptio ROE % Calculation

Apptio's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=-25.621/( (71.568+88.25)/ 2 )
=-25.621/79.909
=-32.06 %

Apptio's annualized ROE % for the quarter that ended in Sep. 2018 is calculated as

ROE %=Net Income (Q: Sep. 2018 )/( (Total Stockholders Equity (Q: Jun. 2018 )+Total Stockholders Equity (Q: Sep. 2018 ))/ count )
=-18.28/( (151.032+156.675)/ 2 )
=-18.28/153.8535
=-11.88 %

* 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. 2018) net income data. ROE % is displayed in the 30-year financial page.


Apptio  (NAS:APTI) 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. 2018 )
=Net Income/Total Stockholders Equity
=-18.28/153.8535
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-18.28 / 236.892)*(236.892 / 417.156)*(417.156 / 153.8535)
=Net Margin %*Asset Turnover*Equity Multiplier
=-7.72 %*0.5679*2.7114
=ROA %*Equity Multiplier
=-4.38 %*2.7114
=-11.88 %

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. 2018 )
=Net Income/Total Stockholders Equity
=-18.28/153.8535
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-18.28 / -15.5) * (-15.5 / -11.512) * (-11.512 / 236.892) * (236.892 / 417.156) * (417.156 / 153.8535)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.1794 * 1.3464 * -4.86 % * 0.5679 * 2.7114
=-11.88 %

Note: The net income data used here is four times the quarterly (Sep. 2018) net income data. The Revenue data used here is four times the quarterly (Sep. 2018) 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.


Apptio ROE % Related Terms

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


Apptio (Apptio) Business Description

Traded in Other Exchanges
N/A
Address
Apptio Inc develops and sells Technology Business Management or TGM solutions. Its cloud-based platform and SaaS applications enable IT leaders to analyze, optimize and plan technology investment and benchmark financial and operational performance against peers. It empowers IT leaders to transform IT into a service provider, to navigate the cloud transition, and to shift technology resources to drive more business innovation. The company operates in the United States, the United Kingdom, Germany, Denmark, Netherlands, Australia, Canada, France and Singapore.
Executives
Rebecca Jacoby director 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Thomas F Bogan director C/O WORKDAY, INC., 6110 STONERIDGE MALL RD, PLEASANTON CA 94588
John Mcadam director
Peter S Klein director C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Kathleen Philips director 256 30TH AVENUE, SAN FRANCISCO CA 94121
Matthew S Mcilwain director 1000 SECOND AVENUE, SUITE 3700, SEATTLE WA 98104
Rajeev Singh director 6222 185TH AVENUE NE, REDMOND WA 98052
Ravi Mohan director C/O SHASTA VENTURES 2440 SAND HILL ROAD, SUITE 300 MENLO PARK CA 94025
Madrona Venture Fund Iii-a Lp other: Former 10% Owner 1000 SECOND AVE, SUITE 3700, SEATTLE WA 98104
Madrona Venture Fund Iii L P other: Former 10% Owner 1000 SECOND AVE, SUITE 3700, SEATTLE WA 98104
Madrona Investment Partners Iii other: Former 10% Owner 999 THIRD AVE, 34TH FLOOR, SEATTLE WA 98104
Greylock Xii Gp Llc 10 percent owner 2550 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Greylock Xii Limited Partnership 10 percent owner 40 GROVE STREET, SUITE 430, WELLESLEY MA 02482
Greylock Xii-a Limited Partnership 10 percent owner 40 GROVE STREET, SUITE 430, WELLESLEY MA 02482