Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Aarons Co's annualized net income for the quarter that ended in Dec. 2023 was $-49 Mil. The Aarons Co's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $528 Mil. Therefore, The Aarons Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was -9.36%.
The historical rank and industry rank for The Aarons Co's Return-on-Tangible-Equity or its related term are showing as below:
AAN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -49.68 Med: 4.38 Max: 16.46
Current: 0.53
During the past 7 years, The Aarons Co's highest Return-on-Tangible-Equity was 16.46%. The lowest was -49.68%. And the median was 4.38%.
AAN's Return-on-Tangible-Equity is ranked worse than 78.96% of 998
companies
in the Business Services industry
Industry Median: 12.135
vs AAN: 0.53
The Aarons Co Return-on-Tangible-Equity Historical Data
The historical data trend for The Aarons Co's Return-on-Tangible-Equity 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.
Competitive Comparison of The Aarons Co's Return-on-Tangible-Equity
For the Rental & Leasing Services subindustry, The Aarons Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
The Aarons Co's Return-on-Tangible-Equity Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, The Aarons Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Aarons Co's Return-on-Tangible-Equity falls into.
The Aarons Co Return-on-Tangible-Equity Calculation
The Aarons Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
The Aarons Co (NYSE:AAN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
The Aarons Co Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of The Aarons Co's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
The Aarons Co (The Aarons Co) Business Description
The Aarons Co Inc is a specialty retailer which has developed a unique lease-to-own model. It serves the customers through the sale and lease ownership of furniture, consumer electronics, computers, home appliances, and other accessories at the best deal with the highest quality products. Aaron's services are available through multiple channels to approximately 40-50 % of the U.S. population. The Company conducts its operations through two primary operating business segments: Aaron's Business and BrandsMart.
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