APLD (Applied Digital) ROE % : -30.50% (As of Feb. 2025)

Applied Digital ROE % Chart

Applied Digital Annual Data
	Trend	May04	May05	May06	May07	May08	May20	May21	May22	May23	May24
ROE %		Get a 7-Day Free Trial					-	-	-67.51	-67.76	-161.95

Applied Digital Quarterly Data
	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25
ROE %	Get a 7-Day Free Trial															-183.37	-211.90	-9.27	-164.07	-30.50

Competitive Comparison of Applied Digital's ROE %

For the Information Technology Services subindustry, Applied Digital'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.

Applied Digital's ROE % Distribution in the Software Industry

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

* The bar in red indicates where Applied Digital's ROE % falls into.

Applied Digital ROE % Calculation

Applied Digital's annualized ROE % for the fiscal year that ended in May. 2024 is calculated as

Applied Digital's annualized ROE % for the quarter that ended in Feb. 2025 is calculated as

* 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 (Feb. 2025) net income data. ROE % is displayed in the 30-year financial page.

Applied Digital  (NAS:APLD) 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:

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:

Note: The net income data used here is four times the quarterly (Feb. 2025) net income data. The Revenue data used here is four times the quarterly (Feb. 2025) 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.

Applied Digital ROE % Related Terms

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

Applied Digital Business Description