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. Recordati SpA's annualizedNet Income for the quarter that ended in Dec. 2023 was $370 Mil. Recordati SpA's average total tangible assets for the quarter that ended in Dec. 2023 was $1,621 Mil. Therefore, Recordati SpA's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was 22.80%.
The historical rank and industry rank for Recordati SpA's Return-on-Tangible-Asset or its related term are showing as below:
RCDTF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 24.17 Med: 32.45 Max: 37.24
Current: 25.36
During the past 13 years, Recordati SpA's highest Return-on-Tangible-Asset was 37.24%. The lowest was 24.17%. And the median was 32.45%.
RCDTF's Return-on-Tangible-Asset is ranked better than 97.22% of 1080
companies
in the Drug Manufacturers industry
Industry Median: 1.86
vs RCDTF: 25.36
Recordati SpA Return-on-Tangible-Asset Historical Data
The historical data trend for Recordati SpA'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 Recordati SpA's Return-on-Tangible-Asset
For the Drug Manufacturers - General subindustry, Recordati SpA'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.
Recordati SpA's Return-on-Tangible-Asset Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Recordati SpA's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Recordati SpA's Return-on-Tangible-Asset 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-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.
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.
Recordati SpA Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Recordati SpA's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Recordati SpA (Recordati SpA) Business Description
Recordati SpA is a drug manufacturing company that focuses on specialty pharmaceuticals. The company produces and promotes medicines globally that focus on primary-care therapies and rare diseases. Recordati uses strategic partnerships as part of its long-term growth. The vast majority of the company's revenue is generated in Italy, followed by the United States, France, and Germany. Recordati reports two operating segments: Specialty and Primary care and Rare diseases. The bulk of the company's profit is derived from its specialty and primary care segment, which includes the production of active ingredients.
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