What is Rackspace Hosting Return-on-Tangible-Equity?
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. Rackspace Hosting's annualized net income for the quarter that ended in Sep. 2016 was $154 Mil. Rackspace Hosting's average shareholder tangible equity for the quarter that ended in Sep. 2016 was $898 Mil. Therefore, Rackspace Hosting's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2016 was 17.19%.
The historical rank and industry rank for Rackspace Hosting's Return-on-Tangible-Equity or its related term are showing as below:
RAX's Return-on-Tangible-Equity is not ranked *
in the Software industry.
Industry Median: 7.57 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Rackspace Hosting Return-on-Tangible-Equity Historical Data
The historical data trend for Rackspace Hosting'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 Rackspace Hosting's Return-on-Tangible-Equity
For the Information Technology Services subindustry, Rackspace Hosting'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.
Rackspace Hosting's Return-on-Tangible-Equity Distribution in the Software Industry
For the Software industry and Technology sector, Rackspace Hosting's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rackspace Hosting's Return-on-Tangible-Equity falls into.
* 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 (Sep. 2016) 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.
Rackspace Hosting Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Rackspace Hosting's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Rackspace Hosting (Rackspace Hosting) Business Description
Rackspace Hosting Inc was incorporated in Delaware in March 2000. The Company, through its operating subsidiaries, is a provider of cloud computing services, managing web-based IT systems for small and medium-sized businesses as well as large enterprises. It offers a portfolio of integrated IT solutions for common business needs, including for ecommerce, web content management, website hosting, data services, office mail and collaboration, and private clouds. It also offers advisory services for technology strategy, security and compliance, application assessment and migration, and DevOps automation. It offers its solutions across a variety of IT form factors, including multi-tenant public cloud, dedicated single-tenant servers, private cloud, and hybrid cloud - all delivered with a commitment to open and standard technologies. Its marketing activities include web-based paid and natural search, participation in technology trade shows, conferences and customer events, advertisements in traditional and electronic (web and email-based) media, and targeted regional public relations activities. Its trademark includes Rackspace, Fanatical Support, and RackConnect. The Company is subject to U.S. federal income tax and various state, local, and international income taxes in numerous jurisdictions.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
RAX has been successfully added to your 