GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Direct Digital Holdings Inc (NAS:DRCTW) » Definitions » Return-on-Tangible-Asset

Direct Digital Holdings (Direct Digital Holdings) Return-on-Tangible-Asset : -8.25% (As of Dec. 2023)


View and export this data going back to 2022. Start your Free Trial

What is Direct Digital Holdings Return-on-Tangible-Asset?

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Direct Digital Holdings's annualized Net Income for the quarter that ended in Dec. 2023 was $-4.90 Mil. Direct Digital Holdings's average total tangible assets for the quarter that ended in Dec. 2023 was $59.43 Mil. Therefore, Direct Digital Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was -8.25%.

The historical rank and industry rank for Direct Digital Holdings's Return-on-Tangible-Asset or its related term are showing as below:

DRCTW' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -49.14   Med: -14.69   Max: 16.07
Current: 4.26

During the past 5 years, Direct Digital Holdings's highest Return-on-Tangible-Asset was 16.07%. The lowest was -49.14%. And the median was -14.69%.

DRCTW's Return-on-Tangible-Asset is ranked better than
66.89% of 1063 companies
in the Media - Diversified industry
Industry Median: 1.06 vs DRCTW: 4.26

Direct Digital Holdings Return-on-Tangible-Asset Historical Data

The historical data trend for Direct Digital Holdings's Return-on-Tangible-Asset 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.

* Premium members only.

Direct Digital Holdings Return-on-Tangible-Asset Chart

Direct Digital Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Asset
-49.14 -21.54 -14.69 16.07 4.47

Direct Digital Holdings Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.89 -14.93 12.50 24.15 -8.25

Competitive Comparison of Direct Digital Holdings's Return-on-Tangible-Asset

For the Advertising Agencies subindustry, Direct Digital Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.


Direct Digital Holdings's Return-on-Tangible-Asset Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Direct Digital Holdings's Return-on-Tangible-Asset falls into.



Direct Digital Holdings Return-on-Tangible-Asset Calculation

Direct Digital Holdings's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=1.986/( (37.969+50.806)/ 2 )
=1.986/44.3875
=4.47 %

Direct Digital Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=-4.904/( (68.056+50.806)/ 2 )
=-4.904/59.431
=-8.25 %

* 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-Asset, the net income of the last fiscal year and the average total tangible assets 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.


Direct Digital Holdings  (NAS:DRCTW) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Direct Digital Holdings Return-on-Tangible-Asset Related Terms

Thank you for viewing the detailed overview of Direct Digital Holdings's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.


Direct Digital Holdings (Direct Digital Holdings) Business Description

Traded in Other Exchanges
Address
1177 West Loop South, Suite 1310, Houston, TX, USA, 77027
Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform primarily focused on providing advertising technology, data-driven campaign optimization and other solutions to underserved and less efficient markets on both the buy- and sell-side of the digital advertising ecosystem.