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i3 Verticals (i3 Verticals) ROE % : 3.05% (As of Mar. 2024)


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What is i3 Verticals ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. i3 Verticals's annualized net income for the quarter that ended in Mar. 2024 was $7.5 Mil. i3 Verticals's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $246.0 Mil. Therefore, i3 Verticals's annualized ROE % for the quarter that ended in Mar. 2024 was 3.05%.

The historical rank and industry rank for i3 Verticals's ROE % or its related term are showing as below:

IIIV' s ROE % Range Over the Past 10 Years
Min: -32.5   Med: -2.47   Max: Negative Equity
Current: 1.01

During the past 8 years, i3 Verticals's highest ROE % was Negative Equity%. The lowest was -32.50%. And the median was -2.47%.

IIIV's ROE % is ranked worse than
55.55% of 2639 companies
in the Software industry
Industry Median: 3.22 vs IIIV: 1.01

i3 Verticals ROE % Historical Data

The historical data trend for i3 Verticals'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.

i3 Verticals ROE % Chart

i3 Verticals Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
Get a 7-Day Free Trial -5.10 -0.36 -2.47 -8.08 -0.36

i3 Verticals Quarterly Data
Jun19 Sep19 Dec19 Mar20 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 Premium Member Only Premium Member Only 0.07 -9.28 7.92 1.83 3.05

Competitive Comparison of i3 Verticals's ROE %

For the Software - Infrastructure subindustry, i3 Verticals'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.


i3 Verticals's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, i3 Verticals's ROE % distribution charts can be found below:

* The bar in red indicates where i3 Verticals's ROE % falls into.



i3 Verticals ROE % Calculation

i3 Verticals'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 )
=-0.811/( (218.379+236.747)/ 2 )
=-0.811/227.563
=-0.36 %

i3 Verticals'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 )
=7.512/( (242.719+249.277)/ 2 )
=7.512/245.998
=3.05 %

* 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.


i3 Verticals  (NAS:IIIV) 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
=7.512/245.998
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(7.512 / 378.168)*(378.168 / 871.239)*(871.239 / 245.998)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.99 %*0.4341*3.5417
=ROA %*Equity Multiplier
=0.86 %*3.5417
=3.05 %

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
=7.512/245.998
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (7.512 / 15.712) * (15.712 / 36.524) * (36.524 / 378.168) * (378.168 / 871.239) * (871.239 / 245.998)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.4781 * 0.4302 * 9.66 % * 0.4341 * 3.5417
=3.05 %

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.


i3 Verticals ROE % Related Terms

Thank you for viewing the detailed overview of i3 Verticals's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


i3 Verticals (i3 Verticals) Business Description

Traded in Other Exchanges
Address
40 Burton Hills Boulevard, Suite 415, Nashville, TN, USA, 37215
i3 Verticals Inc offers integrated payment and software solutions to small and medium-sized businesses and organizations in strategic vertical markets. Its operating segment includes Merchant Services and Software and Services. The company generates maximum revenue from the Software and Services segment. The company's strategic vertical market includes schools, the public sector, not-for-profit organizations, healthcare and others. It provides various solutions such as, gateway, payment processing, online payment, Document management, and ERP among others.
Executives
Timothy Mckenna director 40 BURTON HILLS BOULEVARD, SUITE 415, NASHVILLE TN 37215
Gregory S Daily director, 10 percent owner, officer: Chief Executive Officer 40 BURTON HILLS BOULEVARD, SUITE 415, NASHVILLE TN 37215
David K. Morgan director 40 BURTON HILLS BOULEVARD, SUITE 415, NASHVILLE TN 37215
Christopher Laisure officer: President - Public Sector 40 BURTON HILLS BLVD., SUITE 415, NASHVILLE TN 37215
Paul Christians officer: Chief Operating Officer 40 BURTON HILLS BLVD., SUITE 415, NASHVILLE TN 37215
Pete Panagakis officer: Chief Technology Officer 40 BURTON HILLS BLVD., SUITE 415, NASHVILLE TN 37215
Robert Bertke officer: Chief Technology Officer 40 BURTON HILLS BOULEVARD, SUITE 415, NASHVILLE TN 37215
Decosta Jenkins director 150 THIRD AVENUE SOUTH STE 900, NASHVILLE TN 37201
Frederick Stanford officer: President 40 BURTON HILLS BOULEVARD, SUITE 415, NASHVILLE TN 37215
Geoffrey C. Smith officer: VP of Finance 40 BURTON HILLS BLVD., SUITE 415, NASHVILLE TN 37215
Robert Burton Harvey director 40 BURTON HILLS BOULEVARD, SUITE 415, NASHVILLE TN 37215
John C. Harrison director 40 BURTON HILLS BOULEVARD, SUITE 415, NASHVILLE TN 37215
David M Wilds director, 10 percent owner 40 BURTON HILLS BOULEVARD, SUITE 415, NASHVILLE TN 37215
David Scott Meriwether officer: SVP - Finance 40 BURTON HILLS BOULEVARD, SUITE 415, NASHVILLE TN 37215
First Avenue Partners Ii Lp 10 percent owner C/O I3 VERTICALS, INC., 40 BURTON HILLS BLVD., SUITE 415, NASHVILLE TN 37215