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Five9 (FIVN) ROE % : -9.58% (As of Dec. 2023)


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What is Five9 ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Five9's annualized net income for the quarter that ended in Dec. 2023 was $-49.4 Mil. Five9's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $516.0 Mil. Therefore, Five9's annualized ROE % for the quarter that ended in Dec. 2023 was -9.58%.

The historical rank and industry rank for Five9's ROE % or its related term are showing as below:

FIVN' s ROE % Range Over the Past 10 Years
Min: -194.85   Med: -22.44   Max: -0.23
Current: -19.11

During the past 13 years, Five9's highest ROE % was -0.23%. The lowest was -194.85%. And the median was -22.44%.

FIVN's ROE % is ranked worse than
75.49% of 2640 companies
in the Software industry
Industry Median: 3.225 vs FIVN: -19.11

Five9 ROE % Historical Data

The historical data trend for Five9'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.

Five9 ROE % Chart

Five9 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.68 -17.72 -21.62 -36.33 -19.28

Five9 Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -18.85 -33.59 -21.80 -17.15 -9.58

Competitive Comparison of Five9's ROE %

For the Software - Infrastructure subindustry, Five9'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.


Five9's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, Five9's ROE % distribution charts can be found below:

* The bar in red indicates where Five9's ROE % falls into.



Five9 ROE % Calculation

Five9's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-81.764/( (309.965+538.085)/ 2 )
=-81.764/424.025
=-19.28 %

Five9's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-49.432/( (493.87+538.085)/ 2 )
=-49.432/515.9775
=-9.58 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Five9  (NAS:FIVN) 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. 2023 )
=Net Income/Total Stockholders Equity
=-49.432/515.9775
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-49.432 / 956.248)*(956.248 / 1475.506)*(1475.506 / 515.9775)
=Net Margin %*Asset Turnover*Equity Multiplier
=-5.17 %*0.6481*2.8596
=ROA %*Equity Multiplier
=-3.35 %*2.8596
=-9.58 %

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. 2023 )
=Net Income/Total Stockholders Equity
=-49.432/515.9775
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-49.432 / -48.956) * (-48.956 / -74.392) * (-74.392 / 956.248) * (956.248 / 1475.506) * (1475.506 / 515.9775)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0097 * 0.6581 * -7.78 % * 0.6481 * 2.8596
=-9.58 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


Five9 ROE % Related Terms

Thank you for viewing the detailed overview of Five9's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Five9 (FIVN) Business Description

Traded in Other Exchanges
Address
3001 Bishop Drive, Suite 350, San Ramon, CA, USA, 94583
Five9 offers cloud-native contact center software enabling digital customer service, sales, and marketing engagement. The company's Virtual Contact Center platform combines core telephony functionality, omnichannel engagement, and various modules into a unified cloud contact-center-as-a-service, or CCaaS, platform. Five9's modules include digital self-service, agent assist technology, workflow automation, as well as workforce optimization solutions that optimize call center efficiency, and manage interaction quality and agent performance.
Executives
Panos Kozanian officer: EVP, Product Engineering 3001 BISHOP DR., STE. #350, SAN RAMON CA 94583
Leena Mansharamani officer: SVP, Chief Accounting Officer 3001 BISHOP DR., STE. #350, SAN RAMON CA 94583
Michael Burkland officer: CEO, President and Chairman C/O FIVE9, INC., 4000 EXECUTIVE PARKWAY, SUITE 400, SAN RAMON CA 94583
Daniel P. Burkland officer: EVP, Sales & Business Dev. C/O FIVE9, INC., 4000 EXECUTIVE PARKWAY, SUITE 400, SAN RAMMON CA 94583
Barry Zwarenstein officer: Chief Financial Officer C/O IOMEGA CORP, 4435 EASTGATE MALL 3RD FLOOR, SAN DIEGO CA 92121
Jonathan D Mariner director 2200 WEST DON TYSON PARKWAY, SPRINGDALE AR 72762
Julie Iskow director 2900 UNIVERSITY BOULEVARD, AMES X1 50010
Kimberly Alexy director 500 MCCARTHY BLVD., MILPITAS CA 95035
Jack L Acosta director C/O FIVE9, INC., 4000 EXECUTIVE PARKWAY, SUITE 400, SAN RAMON CA 94583
Rowan M Trollope director, officer: Chief Executive Officer 4000 EXECUTIVE PARKWAY, SUITE #400, SAN RAMON CA 94583
Michael J Burdiek director 39 PARKER, IRVINE CA 92618
Scott Welch officer: EVP, Cloud Operations C/O FIVE9, INC., 4000 EXECUTIVE PARKWAY, SUITE 400, SAN RAMON CA 94583
David G Dewalt director
Ana G. Pinczuk director 5725 DELPHI DRIVE, TROY MI 48098
Robert Zollars director 3061 ZANKER RD, SAN JOSEC CA 95134