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K3 Business Technology Group (LSE:KBT) ROE % : -22.66% (As of May. 2024)


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What is K3 Business Technology Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. K3 Business Technology Group's annualized net income for the quarter that ended in May. 2024 was £-5.84 Mil. K3 Business Technology Group's average Total Stockholders Equity over the quarter that ended in May. 2024 was £25.78 Mil. Therefore, K3 Business Technology Group's annualized ROE % for the quarter that ended in May. 2024 was -22.66%.

The historical rank and industry rank for K3 Business Technology Group's ROE % or its related term are showing as below:

LSE:KBT' s ROE % Range Over the Past 10 Years
Min: -53.38   Med: 0.92   Max: 11.06
Current: -8.92

During the past 13 years, K3 Business Technology Group's highest ROE % was 11.06%. The lowest was -53.38%. And the median was 0.92%.

LSE:KBT's ROE % is ranked worse than
71.92% of 2625 companies
in the Software industry
Industry Median: 4.4 vs LSE:KBT: -8.92

K3 Business Technology Group ROE % Historical Data

The historical data trend for K3 Business Technology 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.

K3 Business Technology Group ROE % Chart

K3 Business Technology Group Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -26.13 -53.38 11.06 -12.99 -8.25

K3 Business Technology Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24
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 -16.41 -8.93 -18.81 3.35 -22.66

Competitive Comparison of K3 Business Technology Group's ROE %

For the Information Technology Services subindustry, K3 Business Technology 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.


K3 Business Technology Group's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, K3 Business Technology Group's ROE % distribution charts can be found below:

* The bar in red indicates where K3 Business Technology Group's ROE % falls into.



K3 Business Technology Group ROE % Calculation

K3 Business Technology Group's annualized ROE % for the fiscal year that ended in Nov. 2023 is calculated as

ROE %=Net Income (A: Nov. 2023 )/( (Total Stockholders Equity (A: Nov. 2022 )+Total Stockholders Equity (A: Nov. 2023 ))/ count )
=-2.385/( (30.554+27.276)/ 2 )
=-2.385/28.915
=-8.25 %

K3 Business Technology Group's annualized ROE % for the quarter that ended in May. 2024 is calculated as

ROE %=Net Income (Q: May. 2024 )/( (Total Stockholders Equity (Q: Nov. 2023 )+Total Stockholders Equity (Q: May. 2024 ))/ count )
=-5.842/( (27.276+24.283)/ 2 )
=-5.842/25.7795
=-22.66 %

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


K3 Business Technology Group  (LSE:KBT) 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: May. 2024 )
=Net Income/Total Stockholders Equity
=-5.842/25.7795
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-5.842 / 30.936)*(30.936 / 41.8365)*(41.8365 / 25.7795)
=Net Margin %*Asset Turnover*Equity Multiplier
=-18.88 %*0.7395*1.6229
=ROA %*Equity Multiplier
=-13.96 %*1.6229
=-22.66 %

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: May. 2024 )
=Net Income/Total Stockholders Equity
=-5.842/25.7795
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-5.842 / -5.516) * (-5.516 / -2.38) * (-2.38 / 30.936) * (30.936 / 41.8365) * (41.8365 / 25.7795)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0591 * 2.3176 * -7.69 % * 0.7395 * 1.6229
=-22.66 %

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


K3 Business Technology Group ROE % Related Terms

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K3 Business Technology Group Business Description

Traded in Other Exchanges
N/A
Address
50 Kansas Avenue, Baltimore House, Manchester, GBR, M50 2GL
K3 Business Technology Group PLC is a business technology group. The company provides integrated business solutions including enterprise resource planning software, customer relationship management software, business intelligence, e-commerce, hosting, and managed services to the supply chain industry. It serves retail, manufacturing, and distribution customers. The company's segments include K3 Own IP, Global Accounts, and 3rd party products. It has operations in the United Kingdom, Netherlands, Ireland, the Middle East, the Rest of Europe, the USA, and the Rest of the World. The revenue is derived from the United Kingdom.

K3 Business Technology Group Headlines

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