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. BlackRock's annualized net income for the quarter that ended in Dec. 2023 was $5,500 Mil. BlackRock's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $5,193 Mil. Therefore, BlackRock's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 105.92%.
The historical rank and industry rank for BlackRock's Return-on-Tangible-Equity or its related term are showing as below:
BLK'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 113.84 Med: 252.68 Max: 550.89
Current: 127.35
During the past 13 years, BlackRock's highest Return-on-Tangible-Equity was 550.89%. The lowest was 113.84%. And the median was 252.68%.
BLK's Return-on-Tangible-Equity is ranked better than 97.37% of 1676
companies
in the Asset Management industry
Industry Median: 4.565
vs BLK: 127.35
BlackRock Return-on-Tangible-Equity Historical Data
The historical data trend for BlackRock'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.
For the Asset Management subindustry, BlackRock'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.
BlackRock Return-on-Tangible-Equity Distribution
For the Asset Management industry and Financial Services sector, BlackRock's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where BlackRock's Return-on-Tangible-Equity falls into.
BlackRock Return-on-Tangible-Equity Calculation
BlackRock'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.
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.
BlackRock Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of BlackRock's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
BlackRock is the largest asset manager in the world, with $9.101 trillion in AUM at the end of September 2023. Product mix is fairly diverse, with 52% of the firm's managed assets in equity strategies, 28% in fixed income, 9% in multi-asset class, 8% in money market funds, and 3% in alternatives. Passive strategies account for around two thirds of long-term AUM, with the company's ETF platform maintaining a leading market share domestically and on a global basis. Product distribution is weighted more toward institutional clients, which by our calculations account for around 80% of AUM. BlackRock is also geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the U.S. and Canada.
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