Virgin Australia Holdings (FRA:VBL0) ROE %: Negative Equity% (As of Dec. 2025)

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FRA:VBL0 Virgin Australia Holdings Ltd FRA:VBL0
12 GF Score
Price €1.73
! 5 Warning Signs
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What is Virgin Australia Holdings ROE %?

Virgin Australia Holdings FRA:VBL0 +1.17% 12 ROE % is Negative Equity% as of Dec. 2025. GuruFocus rates FRA:VBL0 with a GF Score™ of 12/100. The stock has 5 warning signs investors should review. Among 986 Transportation companies, Virgin Australia Holdings ranks better than 99.9% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Virgin Australia Holdings's annualized net income for the quarter that ended in Dec. 2025 was €387 Mil. Virgin Australia Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was €-354 Mil. Therefore, Virgin Australia Holdings's annualized ROE % for the quarter that ended in Dec. 2025 was Negative Equity%.

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

FRA:VBL0' s ROE % Range Over the Past 10 Years
Min: 0   Med: 0   Max: 0
Current: Negative Equity

FRA:VBL0's ROE % is ranked better than
99.9% of 986 companies
in the Transportation industry
Industry Median: 7.61 vs FRA:VBL0: Negative Equity

Virgin Australia Holdings  (FRA:VBL0) 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: Dec. 2025 )
=Net Income/Total Stockholders Equity
=387.108/-354.0585
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(387.108 / 3754.876)*(3754.876 / 2847.8595)*(2847.8595 / -354.0585)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.31 %*1.3185*N/A
=ROA %*Equity Multiplier
=13.59 %*N/A
=Negative Equity %

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: Dec. 2025 )
=Net Income/Total Stockholders Equity
=387.108/-354.0585
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (387.108 / 418.886) * (418.886 / 487.886) * (487.886 / 3754.876) * (3754.876 / 2847.8595) * (2847.8595 / -354.0585)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9241 * 0.8586 * 12.99 % * 1.3185 * N/A
=Negative Equity %

Note: The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.


Virgin Australia Holdings ROE % Related Terms


Virgin Australia Holdings ROE % Historical Data

* Premium members only.

The historical data trend for Virgin Australia 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.

Virgin Australia Holdings ROE % Chart

Virgin Australia Holdings Annual Data
Trend Jun23 Jun24 Jun25
ROE %
0.00 0.00 Negative Equity

Virgin Australia Holdings Semi-Annual Data
Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROE % Get a 7-Day Free Trial 0.00 0.00 Negative Equity Negative Equity Negative Equity

FRA:VBL0 vs DAL, UAL, LUV: ROE % Comparison

For the Airlines subindustry, Virgin Australia 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.


Virgin Australia Holdings ROE % vs Transportation Industry

For the Transportation industry and Industrials sector, Virgin Australia Holdings's ROE % distribution charts can be found below:

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


FRA:VBL0
12GF Score
Virgin Australia Holdings Ltd FRA:VBL0
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Virgin Australia Holdings ROE % Calculation

Virgin Australia Holdings's annualized ROE % for the fiscal year that ended in Jun. 2025 is calculated as

ROE %=Net Income (A: Jun. 2025 )/( (Total Stockholders Equity (A: Jun. 2024 )+Total Stockholders Equity (A: Jun. 2025 ))/ count )
=270.091/( (0+-459.804)/ 1 )
=270.091/-459.804
=Negative Equity %

Virgin Australia Holdings's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Jun. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=387.108/( (-459.804+-248.313)/ 2 )
=387.108/-354.0585
=Negative Equity %

* 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 two times the semi-annual (Dec. 2025) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of Negative Equity% mean?
Virgin Australia Holdings (FRA:VBL0) has a ROE % of Negative Equity% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Virgin Australia Holdings and its competitors. According to the industry distribution chart, Virgin Australia Holdings ranks #1 out of 986 companies in the Transportation industry, placing it in the top 0.099999999999994%.
Is Virgin Australia Holdings' ROE % too high?
Virgin Australia Holdings' current ROE % is Negative Equity%. Based on the distribution chart, Virgin Australia Holdings ranks #1 out of 986 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Virgin Australia Holdings has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Virgin Australia Holdings' ROE % compare to DAL and UAL?
According to the Transportation industry distribution chart, Virgin Australia Holdings ranks #1 out of 986 companies for ROE %. This places Virgin Australia Holdings in the top 0% of its industry — outperforming the majority of peers. The industry median ROE % is 7.61. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Transportation company?
The median ROE % among Transportation companies is 7.61, based on 986 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Virgin Australia Holdings and its competitors. For the Transportation industry, the median ROE % is 7.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virgin Australia Holdings's current ROE % is Negative Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virgin Australia Holdings stock overvalued right now?
Virgin Australia Holdings (FRA:VBL0) has a current ROE % of Negative Equity%. The current ROE % is Negative Equity%. Virgin Australia Holdings' overall GF Score™ is 12/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Virgin Australia Holdings (FRA:VBL0), the current ROE % is Negative Equity% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Virgin Australia Holdings Business Description

Other Exchanges VGN:Australia
Address 275 Grey Street, Level 11, South Brisbane, Brisbane, QLD, AUS, 4101
Virgin Australia is Australia's second-largest airline, operating about a third of the domestic market in a two-player market with Qantas. Virgin is a value-focused carrier operating high-frequency, point-to-point domestic routes and select short-haul international flights. The airline targets leisure and small to medium enterprise travelers with mid-range pricing. The vast majority of revenue is generated by the core airlines segment.
12GF Score

Get the complete analysis for FRA:VBL0

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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