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. Cognex's annualized net income for the quarter that ended in Dec. 2023 was $44.9 Mil. Cognex's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $1,118.1 Mil. Therefore, Cognex's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 4.02%.
The historical rank and industry rank for Cognex's Return-on-Tangible-Equity or its related term are showing as below:
CGNX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.69 Med: 19.45 Max: 26.97
Current: 9.69
During the past 13 years, Cognex's highest Return-on-Tangible-Equity was 26.97%. The lowest was 9.69%. And the median was 19.45%.
CGNX's Return-on-Tangible-Equity is ranked better than 65.58% of 2365
companies
in the Hardware industry
Industry Median: 5.56
vs CGNX: 9.69
Cognex Return-on-Tangible-Equity Historical Data
The historical data trend for Cognex'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 Cognex's Return-on-Tangible-Equity
For the Scientific & Technical Instruments subindustry, Cognex'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.
Cognex's Return-on-Tangible-Equity Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Cognex's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cognex's Return-on-Tangible-Equity falls into.
Cognex Return-on-Tangible-Equity Calculation
Cognex'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.
Cognex Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Cognex's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Cognex Corp provides machine vision products that help automate manufacturing processes. The firm's products include vision software, vision systems, vision sensors, and ID products. Vision software combines vision tools with a customer's own cameras and peripheral equipment and can help with several vision tasks, including part location, identification, measurement, and robotic guidance. Vision systems combine a camera, processor, and vision software into a single package. Vision sensors deliver simple, low-cost solutions for common vision applications, such as checking the size of parts. ID products read codes that have been applied to items during the manufacturing process. Cognex generates the largest proportion of its sales in the United States and Europe.
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