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Vroom (VRM) Return-on-Tangible-Asset : -7.85% (As of Jun. 2024)


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What is Vroom 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. Vroom's annualized Net Income for the quarter that ended in Jun. 2024 was $-84.8 Mil. Vroom's average total tangible assets for the quarter that ended in Jun. 2024 was $1,079.7 Mil. Therefore, Vroom's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2024 was -7.85%.

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

VRM' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -35.93   Med: -25.46   Max: -19.03
Current: -24.23

During the past 6 years, Vroom's highest Return-on-Tangible-Asset was -19.03%. The lowest was -35.93%. And the median was -25.46%.

VRM's Return-on-Tangible-Asset is ranked worse than
94.72% of 1307 companies
in the Vehicles & Parts industry
Industry Median: 3.68 vs VRM: -24.23

Vroom Return-on-Tangible-Asset Historical Data

The historical data trend for Vroom'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.

Vroom Return-on-Tangible-Asset Chart

Vroom Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Asset
Get a 7-Day Free Trial -35.93 -19.03 -19.39 -24.83 -26.08

Vroom Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -17.93 -22.44 -39.65 -22.16 -7.85

Competitive Comparison of Vroom's Return-on-Tangible-Asset

For the Auto & Truck Dealerships subindustry, Vroom'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.


Vroom's Return-on-Tangible-Asset Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Vroom's Return-on-Tangible-Asset distribution charts can be found below:

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



Vroom Return-on-Tangible-Asset Calculation

Vroom'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 )
=-365.54/( (1460.117+1343.53)/ 2 )
=-365.54/1401.8235
=-26.08 %

Vroom's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2024 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Jun. 2024 )  (Q: Mar. 2024 )(Q: Jun. 2024 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Jun. 2024 )  (Q: Mar. 2024 )(Q: Jun. 2024 )
=-84.752/( (1097.131+1062.328)/ 2 )
=-84.752/1079.7295
=-7.85 %

* 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 (Jun. 2024) net income data.


Vroom  (NAS:VRM) 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.


Vroom Return-on-Tangible-Asset Related Terms

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


Vroom Business Description

Traded in Other Exchanges
N/A
Address
3600 West Sam Houston Parkway South, Floor 4, Houston, TX, USA, 77042
Vroom Inc is an end-to-end e-commerce platform for the used vehicles industry. The Company's scalable, data-driven technology brings all phases of the car buying and selling process to consumers offering an extensive selection of used vehicles, transparent pricing, competitive financing, and at-home pick-up and delivery. Its three reportable segments are: The E-commerce segment represents retail sales of used vehicles through its e-commerce platform and fees earned on sales of value-added products associated with those vehicle sales, The Wholesale segment represents sales of used vehicles through wholesale channels, and The Retail Financing segment represents UACC's operations with its network of third-party dealership customers.
Executives
Agnieszka Zakowicz officer: Principal Accounting Officer C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Patricia Moran officer: See remarks GREENHILL & CO., 300 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022
Carol Denise Stott officer: See remarks C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Thomas H Shortt officer: Chief Operating Officer C/O VROOM INC, 1375 BROADWAY, 11TH FLOOR, NEW YORK NY 10018
Robert R. Krakowiak officer: Chief Financial Officer 633 NATALIE LANE, NORTHVILLE MI 48167
Mylod Robert J Jr director
Laura W Lang director DIGITAS INC., 800 BOYLSTON STREET, BOSTON MA 02199
Timothy M Crow director 2455 PACES FERRY ROAD, NW, ATLANTA GA 30339
Paul J. Hennessy director, officer: Chief Executive Officer C/O SHUTTERSTOCK, INC., 350 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10118
Catterton Management Company, L.l.c. director, 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
David K. Jones officer: Chief Financial Officer 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Scott Arnold Dahnke director, 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
Cgp2 Lone Star, L.p. 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06930
Frederick Terrell director 17 STATE STREET, NEW YORK NY 10004
Paula B Pretlow director C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067

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