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Laureate Education (Laureate Education) ROE % : 17.48% (As of Dec. 2023)


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What is Laureate Education ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Laureate Education's annualized net income for the quarter that ended in Dec. 2023 was $167 Mil. Laureate Education's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $958 Mil. Therefore, Laureate Education's annualized ROE % for the quarter that ended in Dec. 2023 was 17.48%.

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

LAUR' s ROE % Range Over the Past 10 Years
Min: -47.14   Med: 9.78   Max: 77.71
Current: 11.98

During the past 13 years, Laureate Education's highest ROE % was 77.71%. The lowest was -47.14%. And the median was 9.78%.

LAUR's ROE % is ranked better than
66.15% of 257 companies
in the Education industry
Industry Median: 5.7 vs LAUR: 11.98

Laureate Education ROE % Historical Data

The historical data trend for Laureate Education'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.

Laureate Education ROE % Chart

Laureate Education Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.48 -24.08 11.26 7.26 12.46

Laureate Education Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 19.06 -13.31 25.02 14.92 17.48

Competitive Comparison of Laureate Education's ROE %

For the Education & Training Services subindustry, Laureate Education'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.


Laureate Education's ROE % Distribution in the Education Industry

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

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



Laureate Education ROE % Calculation

Laureate Education'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 )
=107.59/( (776.226+950.069)/ 2 )
=107.59/863.1475
=12.46 %

Laureate Education's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=167.448/( (965.931+950.069)/ 2 )
=167.448/958
=17.48 %

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


Laureate Education  (NAS:LAUR) 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. 2023 )
=Net Income/Total Stockholders Equity
=167.448/958
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(167.448 / 1637.732)*(1637.732 / 2111.445)*(2111.445 / 958)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.22 %*0.7756*2.204
=ROA %*Equity Multiplier
=7.93 %*2.204
=17.48 %

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. 2023 )
=Net Income/Total Stockholders Equity
=167.448/958
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (167.448 / 334.968) * (334.968 / 445.792) * (445.792 / 1637.732) * (1637.732 / 2111.445) * (2111.445 / 958)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.4999 * 0.7514 * 27.22 % * 0.7756 * 2.204
=17.48 %

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


Laureate Education ROE % Related Terms

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


Laureate Education (Laureate Education) Business Description

Traded in Other Exchanges
Address
PMB 1158, 1000 Brickell Avenue, Suite 715, Miami, FL, USA, 33131
Laureate Education Inc is an international community of universities. The company provides higher education programs and services to students through an international network of licensed universities and higher education institutions. Its geographical segments include Peru and Mexico.
Executives
Ian Kendell Snow director, 10 percent owner 667 MADISON AVENUE, NEW YORK NY 10021
Wengen Alberta, Lp 10 percent owner C/O LAUREATE EDUCATION, INC., 650 SOUTH EXETER STREET, BALTIMORE MD 21202
Sinkfield Richard Harvey Iii officer: Chief Legal Officer LAUREATE EDUCATION, INC., 650 SOUTH EXETER STREET, BALTIMORE MD 21202
Gerard M. Knauer officer: VP, Acctg, Global Controller LAUREATE EDUCATION, INC., 650 SOUTH EXETER STREET, BALTIMORE MD 21202
Macedo Aristides De director C/O LAUREATE EDUCATION, INC., PMB 1158, 1000 BRICKELL AVE., SUITE 715, MIAMI FL 33131
Marcelo Cardoso officer: Chief Transformation Officer LAUREATE EDUCATION, INC., 650 SOUTH EXETER STREET, BALTIMORE MD 21202
Kkr Group Partnership L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Kkr 2006 Fund (overseas), Limited Partnership 10 percent owner 9 WEST 57TH STREET - SUITE 4200, NEW YORK NY 10019
Kkr Group Co. Inc. 10 percent owner 30 HUDSON YARDS, NEW YORK NY 10001
George Munoz director C/O MARRIOTT INTERNATONAL INC, 10400 FERNWOOD ROAD, BETHESDA MD 20817
Cohen Steven A/sac Capital Mgmt Lp 10 percent owner, other: Director-by-Deputization C/O SAC CAPITAL ADVISORS LLC, 72 CUMMINGS POINT ROAD, STAMFORD CT 06902
Barbara Mair director LAUREATE EDUCATION, INC., 78 S.W. 7TH STREET, SUITE 900, MIAMI FL 33130
Snow Phipps Group, Llc director, 10 percent owner 545 MADISON AVE., 10TH FLOOR, NEW YORK NY 10022
Eilif Serck-hanssen officer: Executive Vice President, CFO 7823 CHELSEA STREET, RUXTON MD 21204
Michael J Durham director 3416 CARUTH BOULEVARD, DALLAS TX 75225