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Neusoft Education Technology Co (HKSE:09616) ROE % : 26.37% (As of Jun. 2024)


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What is Neusoft Education Technology Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Neusoft Education Technology Co's annualized net income for the quarter that ended in Jun. 2024 was HK$597 Mil. Neusoft Education Technology Co's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was HK$2,265 Mil. Therefore, Neusoft Education Technology Co's annualized ROE % for the quarter that ended in Jun. 2024 was 26.37%.

The historical rank and industry rank for Neusoft Education Technology Co's ROE % or its related term are showing as below:

HKSE:09616' s ROE % Range Over the Past 10 Years
Min: 6.95   Med: 22.87   Max: 27.52
Current: 21.26

During the past 7 years, Neusoft Education Technology Co's highest ROE % was 27.52%. The lowest was 6.95%. And the median was 22.87%.

HKSE:09616's ROE % is ranked better than
82.1% of 257 companies
in the Education industry
Industry Median: 6.11 vs HKSE:09616: 21.26

Neusoft Education Technology Co ROE % Historical Data

The historical data trend for Neusoft Education Technology Co'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.

Neusoft Education Technology Co ROE % Chart

Neusoft Education Technology Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial 27.29 6.95 18.66 22.87 22.48

Neusoft Education Technology Co Semi-Annual Data
Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.25 17.75 29.91 15.69 26.37

Competitive Comparison of Neusoft Education Technology Co's ROE %

For the Education & Training Services subindustry, Neusoft Education Technology Co'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.


Neusoft Education Technology Co's ROE % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Neusoft Education Technology Co's ROE % distribution charts can be found below:

* The bar in red indicates where Neusoft Education Technology Co's ROE % falls into.



Neusoft Education Technology Co ROE % Calculation

Neusoft Education Technology Co's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=469.822/( (1928.848+2250.568)/ 2 )
=469.822/2089.708
=22.48 %

Neusoft Education Technology Co's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=597.296/( (2250.568+2280.398)/ 2 )
=597.296/2265.483
=26.37 %

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


Neusoft Education Technology Co  (HKSE:09616) 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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=597.296/2265.483
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(597.296 / 2084.42)*(2084.42 / 7017.6485)*(7017.6485 / 2265.483)
=Net Margin %*Asset Turnover*Equity Multiplier
=28.66 %*0.297*3.0976
=ROA %*Equity Multiplier
=8.51 %*3.0976
=26.37 %

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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=597.296/2265.483
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (597.296 / 775.752) * (775.752 / 799.274) * (799.274 / 2084.42) * (2084.42 / 7017.6485) * (7017.6485 / 2265.483)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.77 * 0.9706 * 38.35 % * 0.297 * 3.0976
=26.37 %

Note: The net income data used here is two times the semi-annual (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.


Neusoft Education Technology Co ROE % Related Terms

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Neusoft Education Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No. 8, Software Park Road, Ganjingzi District, Liaoning, Dalian, CHN
Neusoft Education Technology Co Ltd is a China-based investment holding company principally engaged in providing full-time formal higher education services, continuing education services, as well as education resources and apprenticeship programmes. Its full-time formal higher education services and continuing education services are operated by three universities and eight training schools. Its education resources and apprenticeship programme are offered by Dalian Education and a few of its subsidiaries, such as Shanghai Ruixiang and Tianjin Ruidao. It has one operating segment and geographical segment being providing higher education services in PRC.
Executives
Liu Jiren 2501 Other
Pandanus Partners L.p. 2201 Interest of corporation controlled by you
Pandanus Associates Inc. 2201 Interest of corporation controlled by you
Fil Limited 2201 Interest of corporation controlled by you
Deluxe Capital Limited 2201 Interest of corporation controlled by you
Sun Yinhuan 2307 Founder of a discretionary trust who can infl
Century Bliss International Limited 2101 Beneficial owner
Tmf (cayman) Ltd. 2301 Trustee
Deluxe Glorious Limited 2201 Interest of corporation controlled by you
Liu Jiren 2501 Other
Cheng Huiyan 2202 Interest of your spouse
Kang Ruidao International Investment Inc. 2101 Beneficial owner
Kang Ruidao Education First Investment Limited 2201 Interest of corporation controlled by you
Neusoft Holdings International Inc. 2201 Interest of corporation controlled by you
Dalian Neusoft Holdings Co., Ltd. 2201 Interest of corporation controlled by you

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