Compuware (FRA:CWR) ROE % : 3.53% (As of Sep. 2014)

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What is Compuware ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Compuware's annualized net income for the quarter that ended in Sep. 2014 was €28.4 Mil. Compuware's average Total Stockholders Equity over the quarter that ended in Sep. 2014 was €804.0 Mil. Therefore, Compuware's annualized ROE % for the quarter that ended in Sep. 2014 was 3.53%.

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

FRA:CWR' s ROE % Range Over the Past 10 Years
Min: -19.11 Med: 11.51 Max: 39.14
Current: 5.08

During the past 13 years, Compuware's highest ROE % was 39.14%. The lowest was -19.11%. And the median was 11.51%.

FRA:CWR's ROE % is not ranked
in the Software industry.
Industry Median: 3.44 vs FRA:CWR: 5.08

Compuware ROE % Historical Data

The historical data trend for Compuware'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.

Compuware ROE % Chart

Compuware Annual Data

Trend

Mar05

Mar06

Mar07

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

ROE %

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15.40

11.33

9.08

-1.70

6.61

Compuware Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
ROE %	Get a 7-Day Free Trial															6.30	9.25	7.41	0.02	3.53

Competitive Comparison of Compuware's ROE %

For the Software - Application subindustry, Compuware'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.

Compuware's ROE % Distribution in the Software Industry

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

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

Compuware ROE % Calculation

Compuware's annualized ROE % for the fiscal year that ended in Mar. 2014 is calculated as

ROE %	=	Net Income (A: Mar. 2014 )	/	( (Total Stockholders Equity (A: Mar. 2013 )	+	Total Stockholders Equity (A: Mar. 2014 ))	/ count )
	=	51.755	/	( (770.63	+	796.048)	/ 2 )
	=	51.755	/	783.339
	=	6.61 %

Compuware's annualized ROE % for the quarter that ended in Sep. 2014 is calculated as

ROE %	=	Net Income (Q: Sep. 2014 )	/	( (Total Stockholders Equity (Q: Jun. 2014 )	+	Total Stockholders Equity (Q: Sep. 2014 ))	/ count )
	=	28.404	/	( (781.162	+	826.92)	/ 2 )
	=	28.404	/	804.041
	=	3.53 %

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. 2014) net income data. ROE % is displayed in the 30-year financial page.

Compuware (FRA:CWR) 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. 2014 )
=	Net Income	/	Total Stockholders Equity
=	28.404	/	804.041
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(28.404 / 530.452)	*	(530.452 / 1404.4705)	*	(1404.4705 / 804.041)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	5.35 %	*	0.3777	*	1.7468
=	ROA %	*	Equity Multiplier
=	2.02 %	*	1.7468
=	3.53 %

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. 2014 )
=	Net Income	/	Total Stockholders Equity
=	28.404	/	804.041
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(28.404 / 42.376)	*	(42.376 / 45.28)	*	(45.28 / 530.452)	*	(530.452 / 1404.4705)	*	(1404.4705 / 804.041)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.6703	*	0.9359	*	8.54 %	*	0.3777	*	1.7468
=	3.53 %

Note: The net income data used here is four times the quarterly (Sep. 2014) net income data. The Revenue data used here is four times the quarterly (Sep. 2014) 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.

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.

Compuware ROE % Related Terms

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Compuware (FRA:CWR) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.compuware.com

Compuware Corp a Michigan corporation was incorporated in 1973. The Company delivers services and software that enable its customers' important technologies to perform at their peak. It delivers the solutions through software that is installed and run on its customers' owned hardware and applications and through a Software as a Service ('SaaS') model accessed via its hosted networks. It has six business segments: Application Performance Managemen (APM), Mainframe, Changepoint, Uniface, Professional Services and Covisint Application Services ('Covisint'). Its Compuware Application Performance Management ('Compuware APM') consists of its solutions for optimizing the performance of web, non-web, mobile, streaming and cloud applications. Its Mainframe Software Products improve the productivity of development, maintenance and support teams in application analysis, testing, defect detection and remediation, fault management, file and data management, data compliance and application performance management in the IBM z/OS environment. Its Changepoint software combines professional services automation with project portfolio management capabilities to give customers complete visibility into projects, investments and resources for informed business planning and financial control. Its Uniface solution is Compuware's Rapid Application Development environment for building, renewing and integrating some of the complex enterprise applications. Its Covisint application services provide a cloud engagement platform for enabling organizations to securely connect, engage and collaborate with large, distributed communities of customers, business partners and suppliers. Its products and services are used by the IT departments and lines of business of a of commercial and government organizations. Its competitors include BMC Software Inc., CA, Inc., International Business Machines ('IBM'), Hewlett-Packard Company, Keynote Systems, Inc., Accenture, Computer Sciences Corporation, HP Enterprise Services, Analysts International Corporation and Infosys Technologies.

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