Oxford Technology 4 Venture Capital Trust (LSE:OT4) ROE %: 49.10% (As of Feb. 2022)

What is Oxford Technology 4 Venture Capital Trust ROE %?

Oxford Technology 4 Venture Capital Trust LSE:OT4 39 ROE % is 49.10% as of Feb. 2022. GuruFocus rates LSE:OT4 with a GF Score™ of 39/100.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Oxford Technology 4 Venture Capital Trust's annualized net income for the quarter that ended in Feb. 2022 was £2.00 Mil. Oxford Technology 4 Venture Capital Trust's average Total Stockholders Equity over the quarter that ended in Feb. 2022 was £4.08 Mil. Therefore, Oxford Technology 4 Venture Capital Trust's annualized ROE % for the quarter that ended in Feb. 2022 was 49.10%.

The historical rank and industry rank for Oxford Technology 4 Venture Capital Trust's ROE % or its related term are showing as below:

LSE:OT4's ROE % is not ranked ^*
in the Asset Management industry.
Industry Median: 6.395
* Ranked among companies with meaningful ROE % only.

Oxford Technology 4 Venture Capital Trust (LSE:OT4) 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: Feb. 2022 )
=	Net Income	/	Total Stockholders Equity
=	2.002	/	4.0775
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(2.002 / 2.062)	*	(2.062 / 4.0925)	*	(4.0925 / 4.0775)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	97.09 %	*	0.5038	*	1.0037
=	ROA %	*	Equity Multiplier
=	48.91 %	*	1.0037
=	49.10 %

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: Feb. 2022 )
=	Net Income	/	Total Stockholders Equity
=	2.002	/	4.0775
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(2.002 / 2.002)	*	(2.002 / 2.062)	*	(2.062 / 4.0925)	*	(4.0925 / 4.0775)
=	Tax Burden	*	Pretax Margin %	*	Asset Turnover	*	Equity Multiplier
=	1	*	97.09 %	*	0.5038	*	1.0037
=	49.10 %

Note: The net income data used here is two times the semi-annual (Feb. 2022) net income data. The Revenue data used here is two times the semi-annual (Feb. 2022) 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.

Oxford Technology 4 Venture Capital Trust ROE % Related Terms

Oxford Technology 4 Venture Capital Trust ROE % Historical Data

* Premium members only.

The historical data trend for Oxford Technology 4 Venture Capital Trust's ROE % can be seen below:

Oxford Technology 4 Venture Capital Trust ROE % Chart

Oxford Technology 4 Venture Capital Trust Annual Data

Trend

Feb13

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

ROE %

Get a 7-Day Free Trial

-12.35

12.89

-23.30

-14.81

40.25

Oxford Technology 4 Venture Capital Trust Semi-Annual Data
	Aug12	Feb13	Aug13	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22
ROE %	Get a 7-Day Free Trial															-37.14	-13.98	-17.11	32.20	49.10

LSE:OT4 vs BLK, BX, KKR: ROE % Comparison

For the Asset Management subindustry, Oxford Technology 4 Venture Capital Trust'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.

Oxford Technology 4 Venture Capital Trust ROE % vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Oxford Technology 4 Venture Capital Trust's ROE % distribution charts can be found below:

* The bar in red indicates where Oxford Technology 4 Venture Capital Trust's ROE % falls into.

Save Embed

39GF Score

Oxford Technology 4 Venture Capital Trust PLC LSE:OT4

ROE % is just one metric. See GF Score™, valuation, warning signs, and more.

View Full Analysis

Oxford Technology 4 Venture Capital Trust ROE % Calculation

Oxford Technology 4 Venture Capital Trust's annualized ROE % for the fiscal year that ended in Feb. 2022 is calculated as

ROE %	=	Net Income (A: Feb. 2022 )	/	( (Total Stockholders Equity (A: Feb. 2021 )	+	Total Stockholders Equity (A: Feb. 2022 ))	/ count )
	=	1.534	/	( (3.044	+	4.578)	/ 2 )
	=	1.534	/	3.811
	=	40.25 %

Oxford Technology 4 Venture Capital Trust's annualized ROE % for the quarter that ended in Feb. 2022 is calculated as

ROE %	=	Net Income (Q: Feb. 2022 )	/	( (Total Stockholders Equity (Q: Aug. 2021 )	+	Total Stockholders Equity (Q: Feb. 2022 ))	/ count )
	=	2.002	/	( (3.577	+	4.578)	/ 2 )
	=	2.002	/	4.0775
	=	49.10 %

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 (Feb. 2022) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →

What does a ROE % of 49.10% mean?

Oxford Technology 4 Venture Capital Trust (LSE:OT4) has a ROE % of 49.10% as of Feb. 2022. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Oxford Technology 4 Venture Capital Trust and its competitors.

Is Oxford Technology 4 Venture Capital Trust's ROE % too high?

Oxford Technology 4 Venture Capital Trust's current ROE % is 49.10%. The Asset Management industry median ROE % is 6.40. Oxford Technology 4 Venture Capital Trust's value of 49.10% is 667.8% above this industry median. Overall, Oxford Technology 4 Venture Capital Trust has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.

How does Oxford Technology 4 Venture Capital Trust's ROE % compare to BLK and BX?

Oxford Technology 4 Venture Capital Trust's ROE % of 49.10% can be compared against companies in the Asset Management industry. The industry median ROE % is 6.40. Oxford Technology 4 Venture Capital Trust's value of 49.10% is 667.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROE % for an Asset Management company?

The median ROE % among Asset Management companies is 6.40, based on 1,612 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. Oxford Technology 4 Venture Capital Trust's current ROE % of 49.10% is 667.8% above the industry median. 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 Oxford Technology 4 Venture Capital Trust and its competitors. For the Asset Management industry, the median ROE % is 6.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oxford Technology 4 Venture Capital Trust's current ROE % is 49.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Oxford Technology 4 Venture Capital Trust stock overvalued right now?

Oxford Technology 4 Venture Capital Trust (LSE:OT4) has a current ROE % of 49.10%. The current ROE % is 49.10% and 667.8% above the Asset Management industry median of 6.40. Oxford Technology 4 Venture Capital Trust's overall GF Score™ is 39/100. 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 Oxford Technology 4 Venture Capital Trust (LSE:OT4), the current ROE % is 49.10% as of Feb. 2022. 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.

Oxford Technology 4 Venture Capital Trust Business Description

Industry Financial Services Asset Management

Comparable Companies LSE:IIP LSE:GUN LSE:CGW LSE:OT1 LSE:NCA2 LSE:MIL LSE:ASLR AQSE:AQRU LSE:HPAC LSE:VELA BLK BX OSTO:INVE A TSX:BN KKR APO AMP BK TROW XSWX:PGHN

Address The Magdalen Centre, OT4 Managers Ltd, Oxford Science Park, Oxford, GBR, OX4 4GA

Website https://www.oxfordtechnologyvct.com

Oxford Technology 4 Venture Capital Trust PLC is an investment company. The company invests in start-up and early-stage technology companies in general located within 60 miles of Oxford. The company's investment portfolio includes Glide Pharma, MirriAd, Diamond Hard Surfaces, Impact Applications, Insense, Historic Futures, ImmunoBiology, Plasma Antennas, Novacta Holdings, Oxis Energy, Arecor, OxTox, Select Technology, Telegesis, Imagineer Systems, Naked Objects, Dynamic Extractions, Orthogem, Biosyntha, Metal Nanopowders, Polytherics, Blue Water Bio, Superhard Materials and Dynamic Discovery. The company's investment manager is Oxford Technology Management Ltd.

39GF Score

Get the complete analysis for LSE:OT4

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

£0.09

Price

View LSE:OT4 Analysis

See ROE % data for all stocks →