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Definitive Healthcare (Definitive Healthcare) ROE % : -4.42% (As of Mar. 2024)


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What is Definitive Healthcare ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Definitive Healthcare's annualized net income for the quarter that ended in Mar. 2024 was $-38.1 Mil. Definitive Healthcare's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $860.8 Mil. Therefore, Definitive Healthcare's annualized ROE % for the quarter that ended in Mar. 2024 was -4.42%.

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

DH' s ROE % Range Over the Past 10 Years
Min: -22.36   Med: -4.69   Max: -0.79
Current: -21.81

During the past 5 years, Definitive Healthcare's highest ROE % was -0.79%. The lowest was -22.36%. And the median was -4.69%.

DH's ROE % is ranked worse than
77.94% of 612 companies
in the Healthcare Providers & Services industry
Industry Median: 4.115 vs DH: -21.81

Definitive Healthcare ROE % Historical Data

The historical data trend for Definitive Healthcare'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.

Definitive Healthcare ROE % Chart

Definitive Healthcare Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
- -4.36 -5.02 -0.79 -22.36

Definitive Healthcare Quarterly Data
Jul19 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -4.98 -3.43 -73.31 -4.75 -4.42

Competitive Comparison of Definitive Healthcare's ROE %

For the Health Information Services subindustry, Definitive Healthcare'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.


Definitive Healthcare's ROE % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Definitive Healthcare's ROE % distribution charts can be found below:

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



Definitive Healthcare ROE % Calculation

Definitive Healthcare'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 )
=-202.388/( (948.918+861.357)/ 2 )
=-202.388/905.1375
=-22.36 %

Definitive Healthcare's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=-38.072/( (861.357+860.29)/ 2 )
=-38.072/860.8235
=-4.42 %

* 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 (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Definitive Healthcare  (NAS:DH) 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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-38.072/860.8235
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-38.072 / 253.92)*(253.92 / 1818.023)*(1818.023 / 860.8235)
=Net Margin %*Asset Turnover*Equity Multiplier
=-14.99 %*0.1397*2.112
=ROA %*Equity Multiplier
=-2.09 %*2.112
=-4.42 %

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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-38.072/860.8235
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-38.072 / -53.992) * (-53.992 / -30.86) * (-30.86 / 253.92) * (253.92 / 1818.023) * (1818.023 / 860.8235)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7051 * 1.7496 * -12.15 % * 0.1397 * 2.112
=-4.42 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


Definitive Healthcare ROE % Related Terms

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


Definitive Healthcare (Definitive Healthcare) Business Description

Traded in Other Exchanges
N/A
Address
492 Old Connecticut Path, Suite 401, Framingham, MA, USA, 01701
Definitive Healthcare Corp is a leading provider of healthcare commercial intelligence. The company's solutions provide accurate and comprehensive information on healthcare providers and their activities to help customers optimize everything from product development to go-to-market planning and sales and marketing execution. Geographically, it derives a majority of its revenue from the United States.
Executives
Carrie Lazorchak officer: Chief Revenue Officer C/O DEFINITIVE HEALTHCARE CORP., 492 OLD CONNECTICUT PATH, SUITE 401, FRAMINGHAM MA 01701
Scott G Stephenson director C/O VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310-1686
Sea Vii Management, Llc director, 10 percent owner ONE INTERNATIONAL PLACE, SUITE 3520, BOSTON MA 02110
Advent International Gp, Llc director, 10 percent owner 800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199
Spectrum Vii Investment Managers' Fund, L.p. director, 10 percent owner ONE INTERNATIONAL PLACE, 35TH FLOOR, BOSTON MA 02110
Jason Ronald Krantz director, 10 percent owner, officer: Chief Executive Officer C/O DEFINITIVE HEALTHCARE, LLC, 550 COCHITUATE ROAD, FRAMINGHAM MA 01701
Jonathan Maack officer: President C/O DEFINITIVE HEALTHCARE CORP., 550 COCHITUATE RD, FRAMINGHAM MA 01701
Sastry Chilukuri director 5 BUDDY LANE, MORRISTOWN NJ 07960
David Randall Winn director 7900 GLADES ROAD, SUITE 540, BOCA RATON FL 33434
Jeffrey Charles Haywood director, 10 percent owner C/O DEFINITIVE HEALTHCARE, LLC, 550 COCHITUATE ROAD, FRAMINGHAM MA 01701
Richard Douglas Booth officer: Chief Financial Officer 200 CLARENDON STREET, T-9, BOSTON MA 02116
Kathleen A Winters director 101 COLUMBIA ROAD, MORRISTOWN NJ 07960
Spectrum Vii Co-investment Fund, L.p. director, 10 percent owner ONE INTERNATIONAL PLACE, SUITE 3520, BOSTON MA 02110
Advent Global Technology-c Limited Partnership director, 10 percent owner PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199-8069
Advent Global Technology-d Limited Partnership director, 10 percent owner PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199-8069