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Arqit Quantum (Arqit Quantum) ROE % : -132.29% (As of Sep. 2023)


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What is Arqit Quantum ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Arqit Quantum's annualized net income for the quarter that ended in Sep. 2023 was $-97.11 Mil. Arqit Quantum's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was $73.41 Mil. Therefore, Arqit Quantum's annualized ROE % for the quarter that ended in Sep. 2023 was -132.29%.

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

ARQQ' s ROE % Range Over the Past 10 Years
Min: -96.95   Med: -50.4   Max: 291.07
Current: -93.7

During the past 5 years, Arqit Quantum's highest ROE % was 291.07%. The lowest was -96.95%. And the median was -50.40%.

ARQQ's ROE % is ranked worse than
90.94% of 2638 companies
in the Software industry
Industry Median: 3.06 vs ARQQ: -93.70

Arqit Quantum ROE % Historical Data

The historical data trend for Arqit Quantum'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.

Arqit Quantum ROE % Chart

Arqit Quantum Annual Data
Trend Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
- -50.40 - 291.07 -96.95

Arqit Quantum Semi-Annual Data
Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
ROE % Get a 7-Day Free Trial - 1,053.72 20.91 -55.03 -132.29

Competitive Comparison of Arqit Quantum's ROE %

For the Software - Infrastructure subindustry, Arqit Quantum'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.


Arqit Quantum's ROE % Distribution in the Software Industry

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

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



Arqit Quantum ROE % Calculation

Arqit Quantum's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as

ROE %=Net Income (A: Sep. 2023 )/( (Total Stockholders Equity (A: Sep. 2022 )+Total Stockholders Equity (A: Sep. 2023 ))/ count )
=-70.393/( (78.555+66.653)/ 2 )
=-70.393/72.604
=-96.95 %

Arqit Quantum's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=-97.114/( (80.163+66.653)/ 2 )
=-97.114/73.408
=-132.29 %

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


Arqit Quantum  (NAS:ARQQ) 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. 2023 )
=Net Income/Total Stockholders Equity
=-97.114/73.408
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-97.114 / 1.242)*(1.242 / 107.126)*(107.126 / 73.408)
=Net Margin %*Asset Turnover*Equity Multiplier
=-7819.16 %*0.0116*1.4593
=ROA %*Equity Multiplier
=-90.7 %*1.4593
=-132.29 %

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. 2023 )
=Net Income/Total Stockholders Equity
=-97.114/73.408
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-97.114 / -104.426) * (-104.426 / -81.902) * (-81.902 / 1.242) * (1.242 / 107.126) * (107.126 / 73.408)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.93 * 1.275 * -6594.36 % * 0.0116 * 1.4593
=-132.29 %

Note: The net income data used here is two times the semi-annual (Sep. 2023) net income data. The Revenue data used here is two times the semi-annual (Sep. 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.


Arqit Quantum ROE % Related Terms

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Arqit Quantum (Arqit Quantum) Business Description

Traded in Other Exchanges
N/A
Address
Nova North, 11 Bressenden Place, 7th floor, London, GBR, SW1E 5BY
Arqit Quantum Inc is a cybersecurity company that has pioneered a symmetric key agreement technology which makes the communications links of any networked device or data at rest secure against current and future forms of cyber attack - even an attack from a quantum computer. Arqit delivers its symmetric key agreement technology via its QuantumCloud. Its product, QuantumCloud, enables any device to download a lightweight software agent, which can create keys in partnership with any other device. The firm operates in one segment that is, the provision of cybersecurity services via satellite and terrestrial platforms. Key revenue comes from the UK.