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Nutanix (Nutanix) ROE % : Negative Equity% (As of Jan. 2024)


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What is Nutanix ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Nutanix's annualized net income for the quarter that ended in Jan. 2024 was $131 Mil. Nutanix's average Total Stockholders Equity over the quarter that ended in Jan. 2024 was $-627 Mil. Therefore, Nutanix's annualized ROE % for the quarter that ended in Jan. 2024 was Negative Equity%.

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

NTNX's ROE % is not ranked *
in the Software industry.
Industry Median: 3.27
* Ranked among companies with meaningful ROE % only.

Nutanix ROE % Historical Data

The historical data trend for Nutanix'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.

Nutanix ROE % Chart

Nutanix Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -241.86 - - - -

Nutanix Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 - - - - Negative Equity

Competitive Comparison of Nutanix's ROE %

For the Software - Infrastructure subindustry, Nutanix'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.


Nutanix's ROE % Distribution in the Software Industry

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

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



Nutanix ROE % Calculation

Nutanix's annualized ROE % for the fiscal year that ended in Jul. 2023 is calculated as

ROE %=Net Income (A: Jul. 2023 )/( (Total Stockholders Equity (A: Jul. 2022 )+Total Stockholders Equity (A: Jul. 2023 ))/ count )
=-254.56/( (-800.504+-707.419)/ 2 )
=-254.56/-753.9615
=N/A %

Nutanix's annualized ROE % for the quarter that ended in Jan. 2024 is calculated as

ROE %=Net Income (Q: Jan. 2024 )/( (Total Stockholders Equity (Q: Oct. 2023 )+Total Stockholders Equity (Q: Jan. 2024 ))/ count )
=131.18/( (-642.211+-611.682)/ 2 )
=131.18/-626.9465
=Negative Equity %

* 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 (Jan. 2024) 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.


Nutanix  (NAS:NTNX) 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: Jan. 2024 )
=Net Income/Total Stockholders Equity
=131.18/-626.9465
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(131.18 / 2260.932)*(2260.932 / 2650.087)*(2650.087 / -626.9465)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.8 %*0.8532*N/A
=ROA %*Equity Multiplier
=4.95 %*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: Jan. 2024 )
=Net Income/Total Stockholders Equity
=131.18/-626.9465
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (131.18 / 156.564) * (156.564 / 148.18) * (148.18 / 2260.932) * (2260.932 / 2650.087) * (2650.087 / -626.9465)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8379 * 1.0566 * 6.55 % * 0.8532 * N/A
=Negative Equity %

Note: The net income data used here is four times the quarterly (Jan. 2024) net income data. The Revenue data used here is four times the quarterly (Jan. 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.


Nutanix ROE % Related Terms

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


Nutanix (Nutanix) Business Description

Traded in Other Exchanges
Address
1740 Technology Drive, Suite 150, San Jose, CA, USA, 95110
Nutanix Inc provides native hybrid cloud capabilities for businesses. The company offers Enterprise Cloud Platform to businesses for various uses such as web-scale engineering and consumer-grade design, virtualization, and storage into a resilient, and software-defined solution. Geographically, it derives a majority of revenue from the United States and also has a presence in Europe, the Middle East, Asia Pacific, Africa, and other regions.
Executives
Rajiv Ramaswami director, officer: President and CEO 5300 CALIFORNIA AVENUE, IRVINE CA 92617
David Sangster officer: EVP, Operations C/O NUTANIX INC, 1740 TECHNOLOGY DRIVE SUITE 150, SAN JOSE CA 95110
Tyler Wall officer: Chief Legal Officer CHORDIANT SOFTWARE, INC., 20400 STEVENS CREEK BLVD., STE. 400, CUPERTINO CA 94014
Rukmini Sivaraman officer: Chief Financial Officer 1740 TECHNOLOGY DR., SUITE 150, SAN JOSE CA 95110
Mark B Templeton director CITRIX, 851 W CYPRESS CREEK RD, FORT LAUDERDALE FL 33309
Craig Conway director SALESFORCE TOWER, 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
Aaron Boynton officer: Chief Accounting Officer C/O NUTANIX, INC., 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110
Duston Williams officer: Chief Financial Officer C/O NUTANIX, INC., 1740 TECHNOLOGY DRIVE, SUITE 150, SAN JOSE CA 95110
Teresa Gayle Sheppard director C/O ENVISTA HOLDINGS CORPORATION, 200 S. KRAEMER BLVD., BLDG. E, BREA CA 92821
Susan L Bostrom director
Brian Mark Stevens director 25 HOOPER HILL RD., NEW BOSTON NH 03070
Virginia Gambale director C/O JETBLUE AIRWAYS CORP., 27-01 QUEENS PLAZA NORTH, LONG ISLAND CITY NY 11101
Kaddaras Christopher Nicholas Jr officer: Chief Revenue Officer C/O NUTANIX, INC., 1740 TECHNOLOGY DR., STE 150, SAN JOSE CA 95110
Tarkan Maner officer: Chief Commercial Officer C/O NUTANIX, INC., 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110
Dheeraj Pandey director, officer: CEO and Chairman C/O NUTANIX INC, 1740 TECHNOLOGY DRIVE, SAN JOSE CA 95110