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Vdeal System (NSE:VDEAL) ROE % : 128.33% (As of Mar. 2024)


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What is Vdeal System ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Vdeal System's annualized net income for the quarter that ended in Mar. 2024 was ₹62.3 Mil. Vdeal System's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was ₹48.5 Mil. Therefore, Vdeal System's annualized ROE % for the quarter that ended in Mar. 2024 was 128.33%.

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

NSE:VDEAL' s ROE % Range Over the Past 10 Years
Min: 9.97   Med: 38.39   Max: 64.16
Current: 64.16

During the past 3 years, Vdeal System's highest ROE % was 64.16%. The lowest was 9.97%. And the median was 38.39%.

NSE:VDEAL's ROE % is ranked better than
98.92% of 2953 companies
in the Industrial Products industry
Industry Median: 6.16 vs NSE:VDEAL: 64.16

Vdeal System ROE % Historical Data

The historical data trend for Vdeal System'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.

Vdeal System ROE % Chart

Vdeal System Annual Data
Trend Mar22 Mar23 Mar24
ROE %
9.97 38.39 64.16

Vdeal System Semi-Annual Data
Mar22 Mar23 Mar24
ROE % 19.94 76.78 128.33

Competitive Comparison of Vdeal System's ROE %

For the Electrical Equipment & Parts subindustry, Vdeal System'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.


Vdeal System's ROE % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Vdeal System's ROE % distribution charts can be found below:

* The bar in red indicates where Vdeal System's ROE % falls into.



Vdeal System ROE % Calculation

Vdeal System's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=31.138/( (34.183+62.875)/ 2 )
=31.138/48.529
=64.16 %

Vdeal System's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=62.276/( (34.183+62.875)/ 2 )
=62.276/48.529
=128.33 %

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


Vdeal System  (NSE:VDEAL) 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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=62.276/48.529
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(62.276 / 524.496)*(524.496 / 213.6185)*(213.6185 / 48.529)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.87 %*2.4553*4.4019
=ROA %*Equity Multiplier
=29.14 %*4.4019
=128.33 %

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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=62.276/48.529
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (62.276 / 85.27) * (85.27 / 106.674) * (106.674 / 524.496) * (524.496 / 213.6185) * (213.6185 / 48.529)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7303 * 0.7994 * 20.34 % * 2.4553 * 4.4019
=128.33 %

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


Vdeal System ROE % Related Terms

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


Vdeal System Business Description

Traded in Other Exchanges
N/A
Address
New Info Valley Road, Plot No- 4A, 4B & 6, Janla Industrial Area, Janla, Jatni, Khordha, OR, IND, 752054
Vdeal System Ltd Provides solutions in Smart Low Voltage (LV) panels, Smart Medium Voltage (MV) panels, Smart Variable Frequency Drive (VFD) panels, Medium Voltage (MV) Soft Starter, Energy Management Systems (EMS) and Smart Programmable Logic Controller (PLC) panels, Air-insulated & Sandwich bus ducts backed by In-house Product design & development, manufacturing, system integration, servicing of automation solutions and smart electrical control panels that adhere to high international IEC standards of quality and safety. It is a growing Integrated Electrical and Automation solution provider dealing in comprehensive electrical solutions across industries.

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