Return on Equity (ROE)
since 2005
Calculation
Fiserv Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Fiserv, Inc.1 | ÷ | Total Fiserv, Inc. shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 4.31% | = | 100 | × | 1,334) | ÷ | 30,952) |
| Dec 31, 2020 | 2.96% | = | 100 | × | 958) | ÷ | 32,330) |
| Dec 31, 2019 | 2.71% | = | 100 | × | 893) | ÷ | 32,979) |
| Dec 31, 2018 | 51.77% | = | 100 | × | 1,187) | ÷ | 2,293) |
| Dec 31, 2017 | 45.62% | = | 100 | × | 1,246) | ÷ | 2,731) |
| Dec 31, 2016 | 36.60% | = | 100 | × | 930) | ÷ | 2,541) |
| Dec 31, 2015 | 26.77% | = | 100 | × | 712) | ÷ | 2,660) |
| Dec 31, 2014 | 22.88% | = | 100 | × | 754) | ÷ | 3,295) |
| Dec 31, 2013 | 18.08% | = | 100 | × | 648) | ÷ | 3,585) |
| Dec 31, 2012 | 17.88% | = | 100 | × | 611) | ÷ | 3,417) |
| Dec 31, 2011 | 14.49% | = | 100 | × | 472) | ÷ | 3,258) |
| Dec 31, 2010 | 15.36% | = | 100 | × | 496) | ÷ | 3,229) |
| Dec 31, 2009 | 15.73% | = | 100 | × | 476) | ÷ | 3,026) |
| Dec 31, 2008 | 21.94% | = | 100 | × | 569) | ÷ | 2,594) |
| Dec 31, 2007 | 17.79% | = | 100 | × | 439) | ÷ | 2,467) |
| Dec 31, 2006 | 18.55% | = | 100 | × | 450) | ÷ | 2,426) |
| Dec 31, 2005 | 20.94% | = | 100 | × | 516) | ÷ | 2,466) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The analysis of return on equity (ROE) from 2005 to 2021 reveals three distinct financial phases characterized by initial stability, a period of aggressive efficiency growth, and a significant structural shift in the capital base.
- Period of Stability (2005–2011)
- During this interval, ROE remained relatively stable, fluctuating between a high of 21.94% in 2008 and a low of 14.49% in 2011. Net income stayed within a narrow range of US$ 439 million to US$ 569 million, while total shareholders' equity grew steadily from US$ 2,466 million to US$ 3,258 million. The gradual increase in the equity base without a proportional increase in net income contributed to the gradual downward trend in ROE observed toward the end of this period.
- Efficiency Acceleration (2012–2018)
- A period of rapid ROE expansion occurred between 2012 and 2018, with the ratio rising from 17.88% to a peak of 51.77%. This trend was driven by two simultaneous factors: a substantial increase in net income, which reached US$ 1,246 million in 2017, and a contraction of total shareholders' equity, which declined from US$ 3,417 million in 2012 to US$ 2,293 million in 2018. The combination of higher earnings and a reduced equity base resulted in a significant amplification of the return on equity.
- Capital Structure Transformation (2019–2021)
- A sharp reversal in ROE is evident starting in 2019, where the ratio dropped precipitously from 51.77% to 2.71%. This decline was not driven by an earnings collapse, as net income remained robust between US$ 893 million and US$ 1,334 million. Instead, the change is attributable to a massive expansion in total shareholders' equity, which surged from US$ 2,293 million in 2018 to US$ 32,979 million in 2019. This increase in the denominator fundamentally altered the ROE profile, maintaining the ratio in the low single digits through 2021, ending at 4.31%.
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Comparison to Competitors
Fiserv Inc., ROE, long-term trends, comparison to competitors
| Fiserv Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 4.31% | 30.25% | 32.59% | 1.66% | 25.39% | -1.99% | 30.38% | 20.89% | 43.15% | 262.43% | -22.71% | -78.63% | 9.81% | 6.22% | 14.31% | -8.62% |
| Dec 31, 2020 | 2.96% | 30.05% | 39.66% | — | 23.69% | -2.56% | 27.14% | 35.76% | 37.43% | 83.94% | -76.61% | -24.23% | 0.37% | 4.18% | 13.54% | -19.33% |
| Dec 31, 2019 | 2.71% | 33.17% | 28.03% | — | 47.03% | -2.14% | 45.25% | 41.53% | 38.35% | 50.87% | — | -5.16% | 7.11% | 29.45% | 13.04% | -21.36% |
| Dec 31, 2018 | 51.77% | 39.17% | 27.67% | — | 26.84% | — | 51.96% | 51.44% | 20.03% | 8.37% | — | -15.30% | 1.36% | -2.40% | 12.43% | -20.33% |
| Dec 31, 2017 | 45.62% | 38.50% | 20.02% | — | 20.63% | — | 32.70% | 71.71% | 29.29% | 17.33% | — | -28.52% | 2.40% | -25.53% | 4.17% | -35.11% |
| Dec 31, 2016 | 36.60% | 54.42% | 15.74% | — | 27.38% | — | 65.07% | 84.32% | 23.33% | 18.82% | — | -28.60% | -0.95% | -116.76% | 8.35% | -25.52% |
| Dec 31, 2015 | 26.77% | 49.78% | 8.99% | — | 18.34% | — | 92.48% | 15.65% | 15.23% | 20.42% | — | -33.81% | -6.61% | -35.01% | 7.21% | -22.02% |
| Dec 31, 2014 | 22.88% | 51.32% | 3.96% | — | 11.92% | — | 101.30% | 29.47% | 24.59% | 23.37% | — | -48.33% | -7.64% | -41.85% | 8.48% | -14.53% |
| Dec 31, 2013 | 18.08% | 66.16% | 4.31% | — | 14.21% | — | 72.32% | 24.30% | 27.69% | 24.47% | — | -10.74% | -11.67% | -18.70% | 8.89% | -20.12% |
| Dec 31, 2012 | 17.88% | 61.59% | 12.49% | — | 48.07% | — | 88.04% | 28.86% | 25.58% | 22.85% | — | 0.32% | -0.73% | -15.34% | 7.29% | — |
| Dec 31, 2011 | 14.49% | 58.72% | 14.40% | — | 17.57% | — | 78.73% | 24.24% | 40.55% | 21.49% | — | — | 5.05% | — | 10.53% | — |
| Dec 31, 2010 | 15.36% | 62.79% | 14.92% | — | 45.74% | — | 64.36% | 20.35% | 40.63% | 19.92% | — | — | 7.73% | — | 11.29% | — |
| Dec 31, 2009 | 15.73% | 55.08% | 7.90% | — | -138.29% | — | 59.31% | 17.49% | 36.83% | 22.29% | — | — | 6.46% | — | 9.09% | — |
| Dec 31, 2008 | 21.94% | 66.59% | 19.77% | — | -1,818.25% | — | 91.60% | 23.00% | 48.73% | 23.98% | — | — | 4.06% | — | 12.43% | — |
| Dec 31, 2007 | 17.79% | 60.25% | 15.57% | — | 14.24% | — | 36.59% | 21.62% | 45.23% | 25.26% | — | — | 0.17% | — | 9.08% | — |
| Dec 31, 2006 | 18.55% | 51.38% | 9.82% | — | 8.39% | — | 33.30% | 23.99% | 31.42% | 22.52% | — | — | 14.50% | — | 2.13% | — |
| Dec 31, 2005 | 20.94% | 55.42% | 32.34% | — | 2.67% | — | 23.97% | 22.51% | 25.47% | 26.63% | — | — | 5.06% | — | -1.27% | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Software & Services)
Fiserv Inc., ROE, long-term trends, comparison to sector (software & services)
| Fiserv Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2021 | 4.31% | 35.91% |
| Dec 31, 2020 | 2.96% | 30.34% |
| Dec 31, 2019 | 2.71% | 35.56% |
| Dec 31, 2018 | 51.77% | 20.20% |
| Dec 31, 2017 | 45.62% | 23.83% |
| Dec 31, 2016 | 36.60% | 26.25% |
| Dec 31, 2015 | 26.77% | 23.04% |
| Dec 31, 2014 | 22.88% | 28.09% |
| Dec 31, 2013 | 18.08% | 31.71% |
| Dec 31, 2012 | 17.88% | 32.66% |
| Dec 31, 2011 | 14.49% | 38.82% |
| Dec 31, 2010 | 15.36% | 37.89% |
| Dec 31, 2009 | 15.73% | 35.98% |
| Dec 31, 2008 | 21.94% | 44.03% |
| Dec 31, 2007 | 17.79% | 35.48% |
| Dec 31, 2006 | 18.55% | 28.87% |
| Dec 31, 2005 | 20.94% | 24.91% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Fiserv Inc., ROE, long-term trends, comparison to industry (information technology)
| Fiserv Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2021 | 4.31% | 41.64% |
| Dec 31, 2020 | 2.96% | 35.38% |
| Dec 31, 2019 | 2.71% | 35.94% |
| Dec 31, 2018 | 51.77% | 30.23% |
| Dec 31, 2017 | 45.62% | 23.19% |
| Dec 31, 2016 | 36.60% | 23.00% |
| Dec 31, 2015 | 26.77% | 25.97% |
| Dec 31, 2014 | 22.88% | 25.43% |
| Dec 31, 2013 | 18.08% | 24.73% |
| Dec 31, 2012 | 17.88% | 26.09% |
| Dec 31, 2011 | 14.49% | 29.03% |
| Dec 31, 2010 | 15.36% | 27.62% |
| Dec 31, 2009 | 15.73% | 20.05% |
| Dec 31, 2008 | 21.94% | 25.24% |
| Dec 31, 2007 | 17.79% | 23.67% |
| Dec 31, 2006 | 18.55% | 22.58% |
| Dec 31, 2005 | 20.94% | 21.92% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).