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Radius Residential Care (NZSE:RAD) ROE % : 6.13% (As of Sep. 2024)


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What is Radius Residential Care ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Radius Residential Care's annualized net income for the quarter that ended in Sep. 2024 was NZ$3.9 Mil. Radius Residential Care's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was NZ$64.4 Mil. Therefore, Radius Residential Care's annualized ROE % for the quarter that ended in Sep. 2024 was 6.13%.

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

NZSE:RAD' s ROE % Range Over the Past 10 Years
Min: -12.36   Med: 1.37   Max: 7.6
Current: -11.72

During the past 5 years, Radius Residential Care's highest ROE % was 7.60%. The lowest was -12.36%. And the median was 1.37%.

NZSE:RAD's ROE % is ranked worse than
76.04% of 626 companies
in the Healthcare Providers & Services industry
Industry Median: 4.715 vs NZSE:RAD: -11.72

Radius Residential Care ROE % Historical Data

The historical data trend for Radius Residential Care'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.

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Radius Residential Care ROE % Chart

Radius Residential Care Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24
ROE %
- 7.60 5.68 -2.95 -12.36

Radius Residential Care Semi-Annual Data
Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
ROE % Get a 7-Day Free Trial 4.74 -10.34 3.85 -28.56 6.13

Competitive Comparison of Radius Residential Care's ROE %

For the Medical Care Facilities subindustry, Radius Residential Care'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.


Radius Residential Care's ROE % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Radius Residential Care's ROE % distribution charts can be found below:

* The bar in red indicates where Radius Residential Care's ROE % falls into.



Radius Residential Care ROE % Calculation

Radius Residential Care'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 )
=-8.488/( (72.864+64.432)/ 2 )
=-8.488/68.648
=-12.36 %

Radius Residential Care's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=3.944/( (64.432+64.282)/ 2 )
=3.944/64.357
=6.13 %

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


Radius Residential Care  (NZSE:RAD) 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. 2024 )
=Net Income/Total Stockholders Equity
=3.944/64.357
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3.944 / 168.426)*(168.426 / 332.5825)*(332.5825 / 64.357)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.34 %*0.5064*5.1678
=ROA %*Equity Multiplier
=1.18 %*5.1678
=6.13 %

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. 2024 )
=Net Income/Total Stockholders Equity
=3.944/64.357
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (3.944 / 5.52) * (5.52 / 14.478) * (14.478 / 168.426) * (168.426 / 332.5825) * (332.5825 / 64.357)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7145 * 0.3813 * 8.6 % * 0.5064 * 5.1678
=6.13 %

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


Radius Residential Care ROE % Related Terms

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Radius Residential Care Business Description

Traded in Other Exchanges
N/A
Address
56 Parnell Road, Level 4, Parnell, Auckland, NTL, NZL, 1052
Radius Residential Care Ltd is a health and aged care provider for elderly and disabled people. The company provides residential care, hospital care, dementia care, respite care, and palliative care. The company operates in one segment, the provision of aged care in New Zealand. Also, the company provides Young Disabled Care services, for those under 65 who require assistance with self-care, mobility, and/or communication.

Radius Residential Care Headlines

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