Inspur Digital Enterprise Technology (XTER:L1CC) ROE %: 3.77% (As of Dec. 2025) — 53% Below Median

What is Inspur Digital Enterprise Technology ROE %?

Inspur Digital Enterprise Technology XTER:L1CC 65 ROE % is 3.77% as of Dec. 2025, which is 53% below its 10-year median of 8.05. GuruFocus rates XTER:L1CC with a GF Score™ of 65/100. The stock has 8 warning signs investors should review. Among 2,678 Software companies, Inspur Digital Enterprise Technology ranks better than 60.01% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Inspur Digital Enterprise Technology's annualized net income for the quarter that ended in Dec. 2025 was €13.19 Mil. Inspur Digital Enterprise Technology's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was €350.43 Mil. Therefore, Inspur Digital Enterprise Technology's annualized ROE % for the quarter that ended in Dec. 2025 was 3.77%.

The historical rank and industry rank for Inspur Digital Enterprise Technology's ROE % or its related term are showing as below:

XTER:L1CC' s ROE % Range Over the Past 10 Years
Min: -7.87 Med: 8.05 Max: 16.69
Current: 8.63

During the past 13 years, Inspur Digital Enterprise Technology's highest ROE % was 16.69%. The lowest was -7.87%. And the median was 8.05%.

XTER:L1CC's ROE % is ranked better than
60.01% of 2678 companies
in the Software industry
Industry Median: 4.685 vs XTER:L1CC: 8.63

Inspur Digital Enterprise Technology (XTER:L1CC) 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: Dec. 2025 )
=	Net Income	/	Total Stockholders Equity
=	13.194	/	350.4295
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(13.194 / 718.916)	*	(718.916 / 1066.1425)	*	(1066.1425 / 350.4295)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	1.84 %	*	0.6743	*	3.0424
=	ROA %	*	Equity Multiplier
=	1.24 %	*	3.0424
=	3.77 %

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: Dec. 2025 )
=	Net Income	/	Total Stockholders Equity
=	13.194	/	350.4295
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(13.194 / 7.5)	*	(7.5 / 23.906)	*	(23.906 / 718.916)	*	(718.916 / 1066.1425)	*	(1066.1425 / 350.4295)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	1.7592	*	0.3137	*	3.33 %	*	0.6743	*	3.0424
=	3.77 %

Note: The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.

Inspur Digital Enterprise Technology ROE % Related Terms

Inspur Digital Enterprise Technology ROE % Historical Data

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The historical data trend for Inspur Digital Enterprise Technology's ROE % can be seen below:

Inspur Digital Enterprise Technology ROE % Chart

Inspur Digital Enterprise Technology Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROE %

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3.34

6.59

10.12

17.03

8.07

Inspur Digital Enterprise Technology Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
ROE %	Get a 7-Day Free Trial															15.50	10.09	24.28	13.69	3.77

XTER:L1CC vs UBER, SHOP, CRM: ROE % Comparison

For the Software - Application subindustry, Inspur Digital Enterprise Technology'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.

Inspur Digital Enterprise Technology ROE % vs Software Industry

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

* The bar in red indicates where Inspur Digital Enterprise Technology's ROE % falls into.

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Inspur Digital Enterprise Technology ROE % Calculation

Inspur Digital Enterprise Technology's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %	=	Net Income (A: Dec. 2025 )	/	( (Total Stockholders Equity (A: Dec. 2024 )	+	Total Stockholders Equity (A: Dec. 2025 ))	/ count )
	=	28.803	/	( (329.526	+	384.11)	/ 2 )
	=	28.803	/	356.818
	=	8.07 %

Inspur Digital Enterprise Technology's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %	=	Net Income (Q: Dec. 2025 )	/	( (Total Stockholders Equity (Q: Jun. 2025 )	+	Total Stockholders Equity (Q: Dec. 2025 ))	/ count )
	=	13.194	/	( (316.749	+	384.11)	/ 2 )
	=	13.194	/	350.4295
	=	3.77 %

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 (Dec. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →

What does a ROE % of 3.77% mean?

Inspur Digital Enterprise Technology (XTER:L1CC) has a ROE % of 3.77% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Inspur Digital Enterprise Technology and its competitors. This is 53% below median its historical median of 8.05. According to the industry distribution chart, Inspur Digital Enterprise Technology ranks #1071 out of 2678 companies in the Software industry, placing it in the top 40%.

Is Inspur Digital Enterprise Technology's ROE % too high?

Inspur Digital Enterprise Technology's current ROE % of 3.77% is 53% below median its 10-year median of 8.05. The Software industry median ROE % is 4.69. Inspur Digital Enterprise Technology's value of 3.77% is 19.5% below this industry median. Based on the distribution chart, Inspur Digital Enterprise Technology ranks #1071 out of 2678 companies in the Software industry, which is above the industry midpoint. Overall, Inspur Digital Enterprise Technology has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.

How does Inspur Digital Enterprise Technology's ROE % compare to UBER and SHOP?

According to the Software industry distribution chart, Inspur Digital Enterprise Technology ranks #1071 out of 2678 companies for ROE %. This puts Inspur Digital Enterprise Technology in the upper half of its industry. The industry median ROE % is 4.69. Inspur Digital Enterprise Technology's value of 3.77% is 19.5% below this benchmark. While the company's 10-year median is 8.05 vs. the industry median of 4.69, Inspur Digital Enterprise Technology has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROE % for a Software company?

The median ROE % among Software companies is 4.69, based on 2,678 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. Inspur Digital Enterprise Technology's current ROE % of 3.77% is 19.5% below 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 Inspur Digital Enterprise Technology and its competitors. For the Software industry, the median ROE % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inspur Digital Enterprise Technology's current ROE % is 3.77%, which is 53% below median its own 10-year median of 8.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Inspur Digital Enterprise Technology stock overvalued right now?

Inspur Digital Enterprise Technology (XTER:L1CC) has a current ROE % of 3.77%. The current ROE % is 3.77%, which is 53% below median its 10-year median of 8.05 and 19.5% below the Software industry median of 4.69. Inspur Digital Enterprise Technology's overall GF Score™ is 65/100 with 8 warning signs to review. 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 Inspur Digital Enterprise Technology (XTER:L1CC), the current ROE % is 3.77% as of Dec. 2025. 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.

Inspur Digital Enterprise Technology Business Description

Industry Technology Software

Comparable Companies HKSE:06657 HKSE:09669 HKSE:01782 HKSE:06051 HKSE:00909 HKSE:09878 HKSE:08148 HKSE:01675 HKSE:01588 HKSE:02013 XTER:SAP UBER SHOP CRM CDNS NOW ADP SNOW DDOG ADBE

Other Exchanges 00596:Hong Kong

Address 1 Wang Kwong Road, Kowloon Bay, Billion Center, Room B&C, 30th Floor, Tower A, Kowloon, Hong Kong, HKG

Website https://www.inspur.com.hk

Inspur Digital Enterprise Technology Ltd is an investment holding company. The company's segments are Cloud services, Management software, and the Internet of Things. The Cloud services segment includes the provision of cloud services. The management software segment involves the provision of software development and other software services, whereas the Internet of Things segment is engaged in the provision of data centre engineering services and sales of IT peripherals and software. Geographically, the firm generates a majority of its revenue from Mainland China, and also has its presence in Hong Kong and Other countries.