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Instructure Holdings (Instructure Holdings) ROE % : -1.80% (As of Dec. 2023)


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What is Instructure Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Instructure Holdings's annualized net income for the quarter that ended in Dec. 2023 was $-23.1 Mil. Instructure Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,283.9 Mil. Therefore, Instructure Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was -1.80%.

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

INST' s ROE % Range Over the Past 10 Years
Min: -55.52   Med: -5.1   Max: -2.66
Current: -2.66

During the past 6 years, Instructure Holdings's highest ROE % was -2.66%. The lowest was -55.52%. And the median was -5.10%.

INST's ROE % is ranked worse than
61.18% of 2638 companies
in the Software industry
Industry Median: 3.06 vs INST: -2.66

Instructure Holdings ROE % Historical Data

The historical data trend for Instructure Holdings'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.

Instructure Holdings ROE % Chart

Instructure Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial -55.52 - -7.51 -2.69 -2.66

Instructure Holdings Quarterly Data
Dec18 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 Premium Member Only -1.79 -3.72 -3.44 -1.71 -1.80

Competitive Comparison of Instructure Holdings's ROE %

For the Software - Application subindustry, Instructure Holdings'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.


Instructure Holdings's ROE % Distribution in the Software Industry

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

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



Instructure Holdings ROE % Calculation

Instructure Holdings'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 )
=-34.078/( (1276.127+1285.492)/ 2 )
=-34.078/1280.8095
=-2.66 %

Instructure Holdings'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 )
=-23.068/( (1282.26+1285.492)/ 2 )
=-23.068/1283.876
=-1.80 %

* 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.


Instructure Holdings  (NYSE:INST) 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
=-23.068/1283.876
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-23.068 / 541.504)*(541.504 / 2176.5905)*(2176.5905 / 1283.876)
=Net Margin %*Asset Turnover*Equity Multiplier
=-4.26 %*0.2488*1.6953
=ROA %*Equity Multiplier
=-1.06 %*1.6953
=-1.80 %

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
=-23.068/1283.876
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-23.068 / -21.232) * (-21.232 / 0.896) * (0.896 / 541.504) * (541.504 / 2176.5905) * (2176.5905 / 1283.876)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0865 * -23.6964 * 0.17 % * 0.2488 * 1.6953
=-1.80 %

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.


Instructure Holdings ROE % Related Terms

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


Instructure Holdings (Instructure Holdings) Business Description

Traded in Other Exchanges
N/A
Address
6330 South 3000 East, Suite 700, Salt Lake City, UT, USA, 84121
Instructure Holdings Inc is an education technology company dedicated towards helping everyone learn together. it amplify the power of teaching and elevate the learning process, leading to improved student outcomes. The company supports more than 30 million educators and learners at more than 6,000 organizations around the world.
Executives
Matthew Kaminer officer: See remarks 1100 PARK PLACE, SUITE 300, SAN MATEO CA 94403
Benson Michael Lee Jr. officer: Chief Product Officer 6330 SOUTH 3000 EAST, SUITE 700, SALT LAKE CITY UT 84121
Erik Akopiantz director 600 MONTGOMERY STREET, 20TH FLOOR, SAN FRANCISCO CA 94111
John Charles Goodman director 600 MONTGOMERY STREET, 20TH FLOOR, SAN FRANCISCO CA 94111
Stephen M. Daly director, officer: Chief Executive Officer 6330 SOUTH 3000 EAST, SUITE 700, SALT LAKE CITY UT 84121
Chris F Ball officer: See Remarks 6330 SOUTH 3000 EAST, SUITE 700, SALT LAKE CITY UT 84121
Melissa J. Loble officer: See Remarks 6330 SOUTH 3000 EAST, SUITE 700, SALT LAKE CITY UT 84121
Lloyd G Waterhouse director
Thoma Bravo Fund Xiii, L.p. 10 percent owner 150 N. RIVERSIDE PLAZA, SUITE 2800, CHICAGO IL 60606
Thoma Bravo Executive Fund Xiii, L.p. 10 percent owner 150 N. RIVERSIDE PLAZA, SUITE 2800, CHICAGO IL 60606
Thoma Bravo Fund Xiii-a, L.p. 10 percent owner 150 N. RIVERSIDE PLAZA, SUITE 2800, CHICAGO IL 60606
Ossa Fisher director 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
James R. Hutter director 600 MONTGOMERY STREET, 20TH FLOOR, SAN FRANCISCO CA 94111
Dale E. Bowen officer: Chief Financial Officer 6330 SOUTH 3000 EAST, SUITE 700, SALT LAKE CITY UT 84121
Frank Daniel Maylett officer: Chief Revenue Officer 7730 S. UNION PARK AVE, SUITE 500, MIDVALE UT 84047