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Sankhya Infotech (BOM:532972) ROE % : -33.76% (As of Mar. 2022)


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What is Sankhya Infotech ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sankhya Infotech's annualized net income for the quarter that ended in Mar. 2022 was ₹-63.64 Mil. Sankhya Infotech's average Total Stockholders Equity over the quarter that ended in Mar. 2022 was ₹188.53 Mil. Therefore, Sankhya Infotech's annualized ROE % for the quarter that ended in Mar. 2022 was -33.76%.

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

BOM:532972's ROE % is not ranked *
in the Software industry.
Industry Median: 3.23
* Ranked among companies with meaningful ROE % only.

Sankhya Infotech ROE % Historical Data

The historical data trend for Sankhya Infotech'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.

Sankhya Infotech ROE % Chart

Sankhya Infotech Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.38 -1.49 -96.05 -20.56 -53.88

Sankhya Infotech Quarterly Data
Mar14 Mar15 Mar16 Mar17 Mar18 Jun18 Sep18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 -22.60 -19.68 -164.68 -29.33 -33.76

Competitive Comparison of Sankhya Infotech's ROE %

For the Software - Application subindustry, Sankhya Infotech'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.


Sankhya Infotech's ROE % Distribution in the Software Industry

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

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



Sankhya Infotech ROE % Calculation

Sankhya Infotech's annualized ROE % for the fiscal year that ended in Mar. 2022 is calculated as

ROE %=Net Income (A: Mar. 2022 )/( (Total Stockholders Equity (A: Mar. 2021 )+Total Stockholders Equity (A: Mar. 2022 ))/ count )
=-139.028/( (327.56+188.532)/ 2 )
=-139.028/258.046
=-53.88 %

Sankhya Infotech's annualized ROE % for the quarter that ended in Mar. 2022 is calculated as

ROE %=Net Income (Q: Mar. 2022 )/( (Total Stockholders Equity (Q: Dec. 2021 )+Total Stockholders Equity (Q: Mar. 2022 ))/ count )
=-63.644/( (0+188.532)/ 1 )
=-63.644/188.532
=-33.76 %

* 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 (Mar. 2022) net income data. ROE % is displayed in the 30-year financial page.


Sankhya Infotech  (BOM:532972) 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: Mar. 2022 )
=Net Income/Total Stockholders Equity
=-63.644/188.532
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-63.644 / 0)*(0 / 788.908)*(788.908 / 188.532)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*4.1845
=ROA %*Equity Multiplier
=N/A %*4.1845
=-33.76 %

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: Mar. 2022 )
=Net Income/Total Stockholders Equity
=-63.644/188.532
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-63.644 / -71.528) * (-71.528 / -71.536) * (-71.536 / 0) * (0 / 788.908) * (788.908 / 188.532)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8898 * 0.9999 * N/A % * 0 * 4.1845
=-33.76 %

Note: The net income data used here is four times the quarterly (Mar. 2022) net income data. The Revenue data used here is four times the quarterly (Mar. 2022) 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.


Sankhya Infotech ROE % Related Terms

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Sankhya Infotech (BOM:532972) Business Description

Traded in Other Exchanges
N/A
Address
W.S. Colony, House No.1-112/63, 2nd Floor, V. Satyanarayana House, Near KIMS Hospital, Kondapur, Hyderabad, TG, IND, 500 049
Sankhya Infotech Ltd provides simulation and training solutions.Its services include software services around the products, development of simulation software for specific customer needs, courseware, and providing consulting support to customers. There are two segments identified as Defense and Non-Defense segments. Apart from India, the company has established its operations in France and the UAE. The company derives the majority of its revenue through the Non-Defense segment in the UAE.

Sankhya Infotech (BOM:532972) Headlines

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