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. Air Methods's annualized net income for the quarter that ended in Dec. 2016 was $79 Mil. Air Methods's average shareholder tangible equity for the quarter that ended in Dec. 2016 was $159 Mil. Therefore, Air Methods's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2016 was 50.09%.
The historical rank and industry rank for Air Methods's Return-on-Tangible-Equity or its related term are showing as below:
AIRM's Return-on-Tangible-Equity is not ranked *
in the Transportation industry.
Industry Median: 9.865 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Air Methods Return-on-Tangible-Equity Historical Data
The historical data trend for Air Methods'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 Air Methods's Return-on-Tangible-Equity
For the Airports & Air Services subindustry, Air Methods'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.
Air Methods's Return-on-Tangible-Equity Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Air Methods's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Air Methods's Return-on-Tangible-Equity falls into.
Air Methods Return-on-Tangible-Equity Calculation
Air Methods's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2016 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. 2016) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Air Methods (NAS:AIRM) 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.
Air Methods Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Air Methods's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Air Methods Corp is a Delaware corporation, was established in Colorado in 1982. The Company provides air medical emergency transport services and systems throughout the United States of America. It designs, manufactures, and installs medical aircraft interiors and other aerospace and medical transport products. The Company also provides tourism operations in and around the Grand Canyon and Hawaiian Islands. The Company's operating segments include Air Medical Services, Tourism Division and United Rotorcraft. Air Medical Services provides air medical transportation services to the general population as an independent service and to hospitals or other institutions under exclusive operating agreements. The division operates 380 helicopters and 26 fixed wing aircraft under both Instrument Flight Rules and Visual Flight Rules. Tourism Division provides helicopter tours and charter flights, mainly focusing on Grand Canyon and Hawaiian Island tours. The division operates 48 helicopters under two Part 135 Air Carrier Certificates. United Rotorcraft Division designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers. The Company maintains patents covering several products, including the Litter Lift System used in the U.S. Army's HH-60M helicopter and Medical Evacuation Vehicle, and the Articulating Patient Loading System and Modular Equipment Frame developed as part of the modular interior concept. The Company competes with several national and regional air medical transportation providers for contracts with hospitals and other healthcare institutions. It also competes with larger aerial tourism operators in the Grand Canyon market and a number of smaller operators in both the Grand Canyon and Hawaiian Island markets. The Company is subject to the Federal Aviation Act of 1958. All of its flight and maintenance operations-including equipment, ground facilities, dispatch, communications, flight training personnel and other matters affecting air safety are regulated and actively supervised by the U.S. Department of Transportation through the FAA. It is also subject to laws, regulations, and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002, Dodd-Frank Wall Street Reform and Consumer Protection Act, Securities and Exchange Commission (SEC) regulations, NASDAQ Stock Market rules, and other federal and state securities laws.
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