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Koninklijke KPN NV (CHIX:KPNA) Return-on-Tangible-Equity : 140.36% (As of Dec. 2023)


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What is Koninklijke KPN NV 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. Koninklijke KPN NV's annualized net income for the quarter that ended in Dec. 2023 was €866 Mil. Koninklijke KPN NV's average shareholder tangible equity for the quarter that ended in Dec. 2023 was €617 Mil. Therefore, Koninklijke KPN NV's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 140.36%.

The historical rank and industry rank for Koninklijke KPN NV's Return-on-Tangible-Equity or its related term are showing as below:

CHIX:KPNa' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -54.66   Med: 93.44   Max: 153.54
Current: 126.54

During the past 13 years, Koninklijke KPN NV's highest Return-on-Tangible-Equity was 153.54%. The lowest was -54.66%. And the median was 93.44%.

CHIX:KPNa's Return-on-Tangible-Equity is ranked better than
79.88% of 338 companies
in the Telecommunication Services industry
Industry Median: 13.51 vs CHIX:KPNa: 126.54

Koninklijke KPN NV Return-on-Tangible-Equity Historical Data

The historical data trend for Koninklijke KPN NV'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.

* Premium members only.

Koninklijke KPN NV Return-on-Tangible-Equity Chart

Koninklijke KPN NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity 153.54 111.35

Koninklijke KPN NV Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Return-on-Tangible-Equity 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 381.32 298.97 153.64 131.31 140.36

Competitive Comparison of Koninklijke KPN NV's Return-on-Tangible-Equity

For the Telecom Services subindustry, Koninklijke KPN NV'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.


Koninklijke KPN NV's Return-on-Tangible-Equity Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Koninklijke KPN NV's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Koninklijke KPN NV's Return-on-Tangible-Equity falls into.



Koninklijke KPN NV Return-on-Tangible-Equity Calculation

Koninklijke KPN NV's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=844/( (767+749 )/ 2 )
=844/758
=111.35 %

Koninklijke KPN NV's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=866/( (485+749)/ 2 )
=866/617
=140.36 %

* 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 two times the semi-annual (Dec. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Koninklijke KPN NV  (CHIX:KPNa) Return-on-Tangible-Equity Explanation

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.


Koninklijke KPN NV Return-on-Tangible-Equity Related Terms

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Koninklijke KPN NV (CHIX:KPNA) Business Description

Address
Wilhelminakade 123, Rotterdam, NLD, 3072 AP
KPN is the incumbent telecom operator in the Netherlands. It has close to 40% share of the broadband market and 20% of the postpaid mobile market, mainly competing with VodafoneZiggo (mobile and fixed) and T-Mobile Netherlands (mainly mobile). KPN is rolling out fiber to the home in the Netherlands and expects to have most of the country covered by 2025.

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