GURUFOCUS.COM » STOCK LIST » Technology » Software » EFT Solutions Holdings Ltd (HKSE:08062) » Definitions » ROE %

EFT Solutions Holdings (HKSE:08062) ROE % : 19.54% (As of Sep. 2023)


View and export this data going back to 2016. Start your Free Trial

What is EFT Solutions Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. EFT Solutions Holdings's annualized net income for the quarter that ended in Sep. 2023 was HK$24.4 Mil. EFT Solutions Holdings's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was HK$125.1 Mil. Therefore, EFT Solutions Holdings's annualized ROE % for the quarter that ended in Sep. 2023 was 19.54%.

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

HKSE:08062' s ROE % Range Over the Past 10 Years
Min: -3.73   Med: 15.82   Max: 109.13
Current: 16.11

During the past 9 years, EFT Solutions Holdings's highest ROE % was 109.13%. The lowest was -3.73%. And the median was 15.82%.

HKSE:08062's ROE % is ranked better than
77.84% of 2640 companies
in the Software industry
Industry Median: 3.24 vs HKSE:08062: 16.11

EFT Solutions Holdings ROE % Historical Data

The historical data trend for EFT Solutions 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.

* Premium members only.

EFT Solutions Holdings ROE % Chart

EFT Solutions Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROE %
Get a 7-Day Free Trial Premium Member Only 10.76 4.36 24.85 8.91 15.82

EFT Solutions Holdings Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 14.10 22.26 8.07 14.60 19.54

Competitive Comparison of EFT Solutions Holdings's ROE %

For the Software - Infrastructure subindustry, EFT Solutions 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.


EFT Solutions Holdings's ROE % Distribution in the Software Industry

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

* The bar in red indicates where EFT Solutions Holdings's ROE % falls into.



EFT Solutions Holdings ROE % Calculation

EFT Solutions Holdings's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=19.304/( (119.876+124.235)/ 2 )
=19.304/122.0555
=15.82 %

EFT Solutions Holdings's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=24.448/( (0+125.109)/ 1 )
=24.448/125.109
=19.54 %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.


EFT Solutions Holdings  (HKSE:08062) 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. 2023 )
=Net Income/Total Stockholders Equity
=24.448/125.109
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(24.448 / 116.696)*(116.696 / 151.358)*(151.358 / 125.109)
=Net Margin %*Asset Turnover*Equity Multiplier
=20.95 %*0.771*1.2098
=ROA %*Equity Multiplier
=16.15 %*1.2098
=19.54 %

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. 2023 )
=Net Income/Total Stockholders Equity
=24.448/125.109
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (24.448 / 30.508) * (30.508 / 29.204) * (29.204 / 116.696) * (116.696 / 151.358) * (151.358 / 125.109)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8014 * 1.0447 * 25.03 % * 0.771 * 1.2098
=19.54 %

Note: The net income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) 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.


EFT Solutions Holdings ROE % Related Terms

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


EFT Solutions Holdings (HKSE:08062) Business Description

Traded in Other Exchanges
N/A
Address
28-36 Kwai Fung Crescent, Workshops B1 & B3, 11th Floor, Yip Fung Industrial Building, Kwai Chung, New Territories, Hong Kong, HKG
EFT Solutions Holdings Ltd is engaged in the sourcing of electronic fund transfer point-of-sale (EFT-POS) solution providers focusing on the sourcing of EFT-POS terminals and peripheral devices and the provision of EFT-POS system support services in Hong Kong. Its segments consist of Sales of hardware devices, System support and software solution services. The majority of the revenue is derived from the provision of system support, software solution services, POS software solutions services and embedded system solution services.
Executives
Lam Ching Man 2202 Interest of your spouse
Lo Chun Kit Andrew 2101 Beneficial owner
Lck Group Limited 2101 Beneficial owner

EFT Solutions Holdings (HKSE:08062) Headlines

No Headlines