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The Descartes Systems Group (FRA:DC2) ROE % : 10.94% (As of Oct. 2024)


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What is The Descartes Systems Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The Descartes Systems Group's annualized net income for the quarter that ended in Oct. 2024 was €134.2 Mil. The Descartes Systems Group's average Total Stockholders Equity over the quarter that ended in Oct. 2024 was €1,227.2 Mil. Therefore, The Descartes Systems Group's annualized ROE % for the quarter that ended in Oct. 2024 was 10.94%.

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

FRA:DC2' s ROE % Range Over the Past 10 Years
Min: 4.89   Med: 5.78   Max: 10.82
Current: 10.82

During the past 13 years, The Descartes Systems Group's highest ROE % was 10.82%. The lowest was 4.89%. And the median was 5.78%.

FRA:DC2's ROE % is ranked better than
65.87% of 2625 companies
in the Software industry
Industry Median: 4.4 vs FRA:DC2: 10.82

The Descartes Systems Group ROE % Historical Data

The historical data trend for The Descartes Systems Group'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.

The Descartes Systems Group ROE % Chart

The Descartes Systems Group Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.52 5.75 9.35 9.97 9.87

The Descartes Systems Group Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
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 9.22 10.34 11.16 10.70 10.94

Competitive Comparison of The Descartes Systems Group's ROE %

For the Software - Application subindustry, The Descartes Systems Group'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.


The Descartes Systems Group's ROE % Distribution in the Software Industry

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

* The bar in red indicates where The Descartes Systems Group's ROE % falls into.



The Descartes Systems Group ROE % Calculation

The Descartes Systems Group's annualized ROE % for the fiscal year that ended in Jan. 2024 is calculated as

ROE %=Net Income (A: Jan. 2024 )/( (Total Stockholders Equity (A: Jan. 2023 )+Total Stockholders Equity (A: Jan. 2024 ))/ count )
=106.403/( (1020.235+1136.515)/ 2 )
=106.403/1078.375
=9.87 %

The Descartes Systems Group's annualized ROE % for the quarter that ended in Oct. 2024 is calculated as

ROE %=Net Income (Q: Oct. 2024 )/( (Total Stockholders Equity (Q: Jul. 2024 )+Total Stockholders Equity (Q: Oct. 2024 ))/ count )
=134.24/( (1209.446+1245.049)/ 2 )
=134.24/1227.2475
=10.94 %

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


The Descartes Systems Group  (FRA:DC2) 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: Oct. 2024 )
=Net Income/Total Stockholders Equity
=134.24/1227.2475
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(134.24 / 619.672)*(619.672 / 1464.8885)*(1464.8885 / 1227.2475)
=Net Margin %*Asset Turnover*Equity Multiplier
=21.66 %*0.423*1.1936
=ROA %*Equity Multiplier
=9.16 %*1.1936
=10.94 %

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: Oct. 2024 )
=Net Income/Total Stockholders Equity
=134.24/1227.2475
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (134.24 / 177.828) * (177.828 / 174.856) * (174.856 / 619.672) * (619.672 / 1464.8885) * (1464.8885 / 1227.2475)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7549 * 1.017 * 28.22 % * 0.423 * 1.1936
=10.94 %

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


The Descartes Systems Group ROE % Related Terms

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The Descartes Systems Group Business Description

Traded in Other Exchanges
Address
120 Randall Drive, Waterloo, ON, CAN, N2V 1C6
Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.

The Descartes Systems Group Headlines

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