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C3.ai (AI) ROE % : -32.12% (As of Jan. 2024)


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What is C3.ai ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. C3.ai's annualized net income for the quarter that ended in Jan. 2024 was $-290.5 Mil. C3.ai's average Total Stockholders Equity over the quarter that ended in Jan. 2024 was $904.6 Mil. Therefore, C3.ai's annualized ROE % for the quarter that ended in Jan. 2024 was -32.12%.

The historical rank and industry rank for C3.ai's ROE % or its related term are showing as below:

AI' s ROE % Range Over the Past 10 Years
Min: -29.42   Med: -18.73   Max: -12.68
Current: -29.42

During the past 5 years, C3.ai's highest ROE % was -12.68%. The lowest was -29.42%. And the median was -18.73%.

AI's ROE % is ranked worse than
80.25% of 2638 companies
in the Software industry
Industry Median: 3.06 vs AI: -29.42

C3.ai ROE % Historical Data

The historical data trend for C3.ai'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.

C3.ai ROE % Chart

C3.ai Annual Data
Trend Apr19 Apr20 Apr21 Apr22 Apr23
ROE %
- - -12.68 -18.73 -28.02

C3.ai 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 -26.59 -27.68 -27.65 -30.28 -32.12

Competitive Comparison of C3.ai's ROE %

For the Software - Application subindustry, C3.ai'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.


C3.ai's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, C3.ai's ROE % distribution charts can be found below:

* The bar in red indicates where C3.ai's ROE % falls into.



C3.ai ROE % Calculation

C3.ai's annualized ROE % for the fiscal year that ended in Apr. 2023 is calculated as

ROE %=Net Income (A: Apr. 2023 )/( (Total Stockholders Equity (A: Apr. 2022 )+Total Stockholders Equity (A: Apr. 2023 ))/ count )
=-268.839/( (989.477+929.665)/ 2 )
=-268.839/959.571
=-28.02 %

C3.ai'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 )
=-290.524/( (911.276+897.995)/ 2 )
=-290.524/904.6355
=-32.12 %

* 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.


C3.ai  (NYSE:AI) 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
=-290.524/904.6355
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-290.524 / 313.604)*(313.604 / 1067.5515)*(1067.5515 / 904.6355)
=Net Margin %*Asset Turnover*Equity Multiplier
=-92.64 %*0.2938*1.1801
=ROA %*Equity Multiplier
=-27.22 %*1.1801
=-32.12 %

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
=-290.524/904.6355
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-290.524 / -288.568) * (-288.568 / -330.184) * (-330.184 / 313.604) * (313.604 / 1067.5515) * (1067.5515 / 904.6355)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0068 * 0.874 * -105.29 % * 0.2938 * 1.1801
=-32.12 %

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.


C3.ai ROE % Related Terms

Thank you for viewing the detailed overview of C3.ai's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


C3.ai (AI) Business Description

Address
1400 Seaport Boulevard, Redwood City, CA, USA, 94063
C3.ai Inc is an enterprise artificial intelligence company. The company provides software-as-a-service applications that enable customers to rapidly develop, deploy, and operate large-scale Enterprise AI applications across any infrastructure. It provides solutions under three divisions namely, The C3 AI Suite, is a comprehensive application development and runtime environment that is designed to allow customers to rapidly design, develop, and deploy Enterprise AI applications of any type; C3 AI Applications, include a large and growing family of industry-specific and application-specific turnkey AI solutions that can be immediately installed and deployed; and C3.ai Ex Machina, analytics for applying data science to every-day business decisions.
Executives
Juho Parkkinen officer: Chief Accounting Officer C/O C3.AI, INC., 1400 SEAPORT BLVD, REDWOOD CITY CA 94063
Edward Y Abbo officer: Chief Technology Officer C/O C3.AI, INC., 1400 SEAPORT BLVD, REDWOOD CITY CA 94063
Guy Wanger officer: SVP & Chief Admin Officer C/O C3.AI, INC., 1400 SEAPORT BLVD, REDWOOD CITY CA 94063
Richard C Levin director C/O C3.AI, INC., 1400 SEAPORT BLVD, REDWOOD CITY CA 94063
Ward Jr Stephen M director C/O CARPENTER TECHNOLOGY CORP, PO BOX 14662, READING PA 19612
Kr Sridhar director 1299 ORLEANS DRIVE, SUNNYVALE CA 94089
Shankar Sastry director C/O C3.AI, INC., 1300 SEAPORT BLVD., SUITE 500, REDWOOD CITY CA 94063
Houman Behzadi officer: Chief Product Officer C/O C3.AI, INC., 1400 SEAPORT BLVD, REDWOOD CITY CA 94063
Lisa Ann Davis director 2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Adeel Manzoor officer: Chief Financial Officer 4655 GREAT AMERICA PARKWAY, SUITE 300, SANTA CLARA CA 95054
Thomas M Siebel director, 10 percent owner, officer: Chief Executive Officer 1400 SEAPORT BLVD, REDWOOD CITY CA 94063
David Barter officer: Senior VP and CFO C/O MODEL N, INC., 1600 SEAPORT BLVD., SUITE 400, REDWOOD CITY CA 94063
Patricia A House director C/O C3.AI, INC., 1400 SEAPORT BLVD, REDWOOD CITY CA 94063
Bruce A Cleveland officer: Senior VP and CMO C/O C3.AI, INC., 1300 SEAPORT BLVD, SUITE 500, REDWOOD CITY CA 94063
Lutton Richard J. Jr. officer: Senior VP and General Counsel C/O C3.AI, INC., 1300 SEAPORT BLVD, SUITE 500, REDWOOD CITY CA 94603