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Marqeta (Marqeta) ROE % : -12.72% (As of Dec. 2023)


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What is Marqeta ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Marqeta's annualized net income for the quarter that ended in Dec. 2023 was $-161.5 Mil. Marqeta's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,269.2 Mil. Therefore, Marqeta's annualized ROE % for the quarter that ended in Dec. 2023 was -12.72%.

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

MQ' s ROE % Range Over the Past 10 Years
Min: -42.38   Med: -17.61   Max: -12.13
Current: -16.35

During the past 5 years, Marqeta's highest ROE % was -12.13%. The lowest was -42.38%. And the median was -17.61%.

MQ's ROE % is ranked worse than
74.16% of 2635 companies
in the Software industry
Industry Median: 3.27 vs MQ: -16.35

Marqeta ROE % Historical Data

The historical data trend for Marqeta'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.

Marqeta ROE % Chart

Marqeta Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
-42.38 -22.42 -17.61 -12.13 -16.42

Marqeta Quarterly Data
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 -7.05 -18.94 -16.76 -16.49 -12.72

Competitive Comparison of Marqeta's ROE %

For the Software - Infrastructure subindustry, Marqeta'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.


Marqeta's ROE % Distribution in the Software Industry

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

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



Marqeta ROE % Calculation

Marqeta'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 )
=-222.962/( (1472.956+1243.395)/ 2 )
=-222.962/1358.1755
=-16.42 %

Marqeta'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 )
=-161.5/( (1295.083+1243.395)/ 2 )
=-161.5/1269.239
=-12.72 %

* 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.


Marqeta  (NAS:MQ) 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
=-161.5/1269.239
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-161.5 / 475.288)*(475.288 / 1596.47)*(1596.47 / 1269.239)
=Net Margin %*Asset Turnover*Equity Multiplier
=-33.98 %*0.2977*1.2578
=ROA %*Equity Multiplier
=-10.12 %*1.2578
=-12.72 %

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
=-161.5/1269.239
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-161.5 / -165.616) * (-165.616 / -225.344) * (-225.344 / 475.288) * (475.288 / 1596.47) * (1596.47 / 1269.239)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9751 * 0.7349 * -47.41 % * 0.2977 * 1.2578
=-12.72 %

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.


Marqeta ROE % Related Terms

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


Marqeta (Marqeta) Business Description

Traded in Other Exchanges
Address
180 Grand Avenue, 6th Floor, Oakland, CA, USA, 94612
Headquartered in Oakland, California, and founded in 2010, Marqeta provides its clients with a card-issuing platform that offers the infrastructure and tools necessary to offer digital, physical, and tokenized payment options without the need for a traditional bank. The company's open APIs are designed to allow third parties like DoorDash, Klarna, and Block to rapidly develop and deploy innovative card-based products and payment services without the need to develop the underlying technology. The company generates revenue primarily through processing and ATM fees for cards issued on its platform.
Executives
Randall F. Kern officer: Chief Technology Officer C/O MARQETA, INC., 180 GRAND AVE., FLR 6, OAKLAND CA 94612
Godfrey Sullivan director SPLUNK INC., 250 BRANNAN STREET, SAN FRANCISCO CA 94107
Judson C Linville director 200 VESEY STREET, NEW YORK NY 10285
Martha Cummings director C/O MARQETA, INC., 180 GRAND AVE., FLR 6, OAKLAND CA 94612
Najuma Atkinson director C/O HASBRO, INC., 1011 NEWPORT AVE, PAWTUCKET RI 02861
Crystal Sumner officer: See Remarks 415 KEARNY STREET, SAN FRANCISCO CA 94108
Todd Pollak officer: Chief Revenue Officer 180 GRAND AVENUE, 6TH FLOOR, OAKLAND CA 94612
Simon Khalaf director, officer: Chief Executive Officer 180 GRAND AVENUE, 6TH FLOOR, OAKLAND CA 94612
Srikiran Prasad director 180 GRAND AVENUE, 6TH FLOOR, OAKLAND CA 94612
Seth R Weissman officer: See Remarks 3055 CLEARVIEW WAY, SAN MATEO CA 94402
Michael Milotich officer: Chief Financial Officer 180 GRAND AVENUE, 6TH FLOOR, OAKLAND CA 94612
83north Ii Limited Partnership 10 percent owner 10 ABBA EBAN BOULEVARD, BUILDING C, 9TH FLOOR, HERZLIYA PITUACH L3 46733
Iconiq Strategic Partners Iii, L.p. 10 percent owner 394 PACIFIC AVENUE, 2ND FLOOR, SAN FRANCISCO CA 94111
Vidya Peters officer: Chief Marketing Officer C/O MARQETA, INC., 180 GRAND AVE., FLR 6, OAKLAND CA 94612
Amy Chang director 2100 SEAPORT BLVD., C/O INFORMATICA CORPORATION, REDWOOD CITY CA 94063