LTRE (Learning Tree International) ROE %: Negative Equity% (As of Sep. 2018)

What is Learning Tree International ROE %?

Learning Tree International LTRE ROE % is Negative Equity% as of Sep. 2018.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Learning Tree International's annualized net income for the quarter that ended in Sep. 2018 was $1.20 Mil. Learning Tree International's average Total Stockholders Equity over the quarter that ended in Sep. 2018 was $-14.03 Mil. Therefore, Learning Tree International's annualized ROE % for the quarter that ended in Sep. 2018 was Negative Equity%.

The historical rank and industry rank for Learning Tree International's ROE % or its related term are showing as below:

LTRE's ROE % is not ranked ^*
in the Education industry.
Industry Median: 7.31
* Ranked among companies with meaningful ROE % only.

Learning Tree International (OTCPK:LTRE) 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. 2018 )
=	Net Income	/	Total Stockholders Equity
=	1.2	/	-14.0345
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(1.2 / 69.296)	*	(69.296 / 23.784)	*	(23.784 / -14.0345)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	1.73 %	*	2.9136	*	N/A
=	ROA %	*	Equity Multiplier
=	5.04 %	*	N/A
=	Negative Equity %

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. 2018 )
=	Net Income	/	Total Stockholders Equity
=	1.2	/	-14.0345
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(1.2 / 1.472)	*	(1.472 / 2.144)	*	(2.144 / 69.296)	*	(69.296 / 23.784)	*	(23.784 / -14.0345)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.8152	*	0.6866	*	3.09 %	*	2.9136	*	N/A
=	Negative Equity %

Note: The net income data used here is four times the quarterly (Sep. 2018) net income data. The Revenue data used here is four times the quarterly (Sep. 2018) 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.

Learning Tree International ROE % Related Terms

Learning Tree International ROE % Historical Data

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The historical data trend for Learning Tree International's ROE % can be seen below:

Learning Tree International ROE % Chart

Learning Tree International Annual Data

Trend

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

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Sep18

ROE %

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0.01

-133.44

0.00

Learning Tree International Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
ROE %	Get a 7-Day Free Trial															Negative Equity	Negative Equity	0.00	0.00	Negative Equity

LTRE vs WAFU: ROE % Comparison

For the Education & Training Services subindustry, Learning Tree International'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.

Learning Tree International ROE % vs Education Industry

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

* The bar in red indicates where Learning Tree International's ROE % falls into.

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Learning Tree International ROE % Calculation

Learning Tree International's annualized ROE % for the fiscal year that ended in Sep. 2018 is calculated as

ROE %	=	Net Income (A: Sep. 2018 )	/	( (Total Stockholders Equity (A: Sep. 2017 )	+	Total Stockholders Equity (A: Sep. 2018 ))	/ count )
	=	-2.059	/	( (-11.822	+	-13.916)	/ 2 )
	=	-2.059	/	-12.869
	=	N/A %

Learning Tree International's annualized ROE % for the quarter that ended in Sep. 2018 is calculated as

ROE %	=	Net Income (Q: Sep. 2018 )	/	( (Total Stockholders Equity (Q: Jun. 2018 )	+	Total Stockholders Equity (Q: Sep. 2018 ))	/ count )
	=	1.2	/	( (-14.153	+	-13.916)	/ 2 )
	=	1.2	/	-14.0345
	=	Negative Equity %

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. 2018) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.

Frequently Asked Questions Learn more about ROE % →

What does a ROE % of Negative Equity% mean?

Learning Tree International (LTRE) has a ROE % of Negative Equity% as of Sep. 2018. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Learning Tree International and its competitors.

Is Learning Tree International's ROE % too high?

Learning Tree International's current ROE % is Negative Equity%.

How does Learning Tree International's ROE % compare to WAFU?

Learning Tree International's ROE % of Negative Equity% can be compared against companies in the Education industry. The industry median ROE % is 7.31. 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 Education company?

The median ROE % among Education companies is 7.31, based on 263 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. 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 Learning Tree International and its competitors. For the Education industry, the median ROE % is 7.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Learning Tree International's current ROE % is Negative Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Learning Tree International stock overvalued right now?

Learning Tree International (LTRE) has a current ROE % of Negative Equity%. The current ROE % is Negative Equity%. 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 Learning Tree International (LTRE), the current ROE % is Negative Equity% as of Sep. 2018. 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.

Learning Tree International Business Description

Industry Consumer Defensive Education

Comparable Companies XKLS:0107 XKLS:0117 XBRU:UNI BOM:532339 SGX:BOU HKSE:08417 HKSE:08160 LSE:MLVN MIL:ABTG ASX:8VI LSE:OBOR ASX:SGU BOM:539682 WAFU BOM:533540 TSXV:BTRU XKLS:5194 NSE:KEERTI BOM:508918 ASX:SF1

Address 13650 Dulles Technology Drive, Suite 400, Herndon, VA, USA, 20171

Website http://www.learningtree.com

Learning Tree International Inc provides education and training in information technology. Its proprietary library of course titles focuses on client-server systems, computer networks, operating systems, databases, programming, graphical user interfaces, object-oriented technology, and IT management. Its courses are offered in hotels, conference facilities, and customer sites.