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. Athlon Energy's annualizedNet Income for the quarter that ended in Sep. 2014 was €225.6 Mil. Athlon Energy's average total tangible assets for the quarter that ended in Sep. 2014 was €2,212.3 Mil. Therefore, Athlon Energy's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2014 was 10.20%.
The historical rank and industry rank for Athlon Energy's Return-on-Tangible-Asset or its related term are showing as below:
FRA:28A'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 5.35 Med: 6.43 Max: 7.5
Current: 6.07
During the past 3 years, Athlon Energy's highest Return-on-Tangible-Asset was 7.50%. The lowest was 5.35%. And the median was 6.43%.
FRA:28A's Return-on-Tangible-Asset is not ranked
in the Oil & Gas industry.
Industry Median: 2.6
vs FRA:28A: 6.07
Athlon Energy Return-on-Tangible-Asset Historical Data
The historical data trend for Athlon Energy'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.
Competitive Comparison of Athlon Energy's Return-on-Tangible-Asset
For the Oil & Gas E&P subindustry, Athlon Energy'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.
Athlon Energy's Return-on-Tangible-Asset Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Athlon Energy's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Athlon Energy's Return-on-Tangible-Asset falls into.
Athlon Energy Return-on-Tangible-Asset Calculation
Athlon Energy's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2013 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-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 (Sep. 2014) net income data.
Athlon Energy (FRA:28A) 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 companys 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 companys 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.
Athlon Energy Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Athlon Energy's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Athlon Energy Inc was founded in August 2010 and formed on April 1, 2013 as a Delaware corporation. The Company is an independent exploration and production company engaged in the acquisition, development, and exploitation of unconventional oil and liquids-rich natural gas reserves in the Permian Basin. The Permian Basin spans portions of Texas and New Mexico and is composed of three primary sub-basins: the Delaware Basin, the Central Basin Platform, and the Midland Basin. All of the properties are located in the Midland Basin. The Company's drilling activity is primarily engaged in the low-risk vertical development of stacked pay zones, including the Clearfork, Spraberry, Wolfcamp, Cline, Strawn, Atoka, and Mississippian formations, referred to as the Wolfberry play, and horizontal development of the Wolfcamp. As of December 31, 2013, it had identified 2,232 gross vertical drilling locations on 40-acre spacing and an additional 2,616 gross vertical drilling locations on 20-acre spacing. Only 659 gross of these potential vertical drilling locations were booked as proved undeveloped reserves. As of December 31, 2013, it had also identified 1,065 gross horizontal drilling locations targeting Wolfcamp A, Wolfcamp B, Wolfcamp C, and Cline intervals, which comprise 327 gross, 362 gross, 136 gross, and 240 gross locations, respectively. Its acreage position was 127,840 gross acres at December 31, 2013. As of December 31, 2013, it had 127.3 MMBOE of proved reserves, comprised of 71.2 MMBbls of oil, 30.7 MMBbls of NGLs, and 152.2 Bcf of natural gas. The Company's facilities located at well locations include field gathering systems, storage tank batteries, saltwater disposal systems, oil/gas/water separation equipment, and pumping units. It owns 10 saltwater disposal systems with over 45,700 barrels of water per day capacity and access to over 144 fresh water supply wells throughout its acreage.
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