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Capella Education Co (Capella Education Co) Return-on-Tangible-Equity : 22.51% (As of Jun. 2018)


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What is Capella Education Co 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. Capella Education Co's annualized net income for the quarter that ended in Jun. 2018 was $47.2 Mil. Capella Education Co's average shareholder tangible equity for the quarter that ended in Jun. 2018 was $209.5 Mil. Therefore, Capella Education Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2018 was 22.51%.

The historical rank and industry rank for Capella Education Co's Return-on-Tangible-Equity or its related term are showing as below:

CPLA's Return-on-Tangible-Equity is not ranked *
in the Education industry.
Industry Median: 9.77
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Capella Education Co Return-on-Tangible-Equity Historical Data

The historical data trend for Capella Education Co'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.

Capella Education Co Return-on-Tangible-Equity Chart

Capella Education Co Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.05 22.42 21.49 23.00 12.56

Capella Education Co Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
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 22.83 18.02 -14.75 27.23 22.51

Competitive Comparison of Capella Education Co's Return-on-Tangible-Equity

For the Education & Training Services subindustry, Capella Education Co'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.


Capella Education Co's Return-on-Tangible-Equity Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Capella Education Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Capella Education Co's Return-on-Tangible-Equity falls into.



Capella Education Co Return-on-Tangible-Equity Calculation

Capella Education Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2017 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2017 )  (A: Dec. 2016 )(A: Dec. 2017 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2017 )  (A: Dec. 2016 )(A: Dec. 2017 )
=23.505/( (175.761+198.512 )/ 2 )
=23.505/187.1365
=12.56 %

Capella Education Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2018 )  (Q: Mar. 2018 )(Q: Jun. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2018 )  (Q: Mar. 2018 )(Q: Jun. 2018 )
=47.16/( (208.269+210.791)/ 2 )
=47.16/209.53
=22.51 %

* 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 four times the quarterly (Jun. 2018) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Capella Education Co  (NAS:CPLA) 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.


Capella Education Co Return-on-Tangible-Equity Related Terms

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


Capella Education Co (Capella Education Co) Business Description

Traded in Other Exchanges
N/A
Address
Capella Education Co is an American for-profit education company that operates online universities and various educational programs. The company's flagship offering, Capella University, operates various bachelor's, master's, and doctoral degree programs with close to 35,000 students enrolled. Master's degree programs represent approximately 50% of the university's degree programs in areas such as technology, business, healthcare, and psychology. Capella University focuses on mid-career professionals with an average student age of 39 years. Enrollment and fees from Capella University are the largest source of revenue, followed by other educational programs. A large portion of the company's revenue is made possible by federal financial aid programs such as Pell Fund Grants.
Executives
Jody Miller director 225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Peter M Ramstad officer: SVP & Chief HR Officer 225 SOUTH 6TH ST, 9TH FLOOR, MINNEAPOLIS MN 55402
Andrew E Watt officer: Senior Vice President 225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Michael Linton director C/O LOANDEPOT, INC. ATTN GENERAL COUNSEL, 26642 TOWNE CENTRE DRIVE, FOOTHILL RANCH CA 92610
H James Dallas director 127 PUBLIC SQUARE, CLEVELAND OH 44114
J Kevin Gilligan director, officer: Chairman & CEO P O BOX 1441, MINNEAPOLIS MN 55440-1441
Rita D Brogley director 225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Steve Polacek officer: SVP & CFO 4106 SUNNYSIDE ROAD, EDINA MN 55424
Matthew Wagner Ferguson director C/O ECHO GLOBAL LOGISTICS, INC. 600 W CHICAGO AVE, SUITE 725 CHICAGO IL 60654
Stephen G Shank director C/O CAPELLA EDUCATION CO, 222 S 9TH ST, MINNEAPOLIS MN 55402
Andrew M Slavitt director 225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Mark N Greene director 901 MARQUETTE AVENUE, SUITE 3200, MINNEAPOLIS MN 55402
Sandra E Taylor director 265 TURNER DRIVE, DURANGO CO 81303
Amy L Ronneberg officer: Vice President & Controller 225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Lois M Martin officer: Sr VP & CFO PO BOX 1101, ADC TELCOMMUNICATIONS INC, MINNEAPOLIS MN 55440-1104

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