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King Digital Entertainment (King Digital Entertainment) Return-on-Tangible-Equity : 37.21% (As of Dec. 2015)


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What is King Digital Entertainment 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. King Digital Entertainment's annualized net income for the quarter that ended in Dec. 2015 was $363 Mil. King Digital Entertainment's average shareholder tangible equity for the quarter that ended in Dec. 2015 was $975 Mil. Therefore, King Digital Entertainment's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2015 was 37.21%.

The historical rank and industry rank for King Digital Entertainment's Return-on-Tangible-Equity or its related term are showing as below:

KING's Return-on-Tangible-Equity is not ranked *
in the Interactive Media industry.
Industry Median: 3.55
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

King Digital Entertainment Return-on-Tangible-Equity Historical Data

The historical data trend for King Digital Entertainment'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.

King Digital Entertainment Return-on-Tangible-Equity Chart

King Digital Entertainment Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15
Return-on-Tangible-Equity
- 26.42 292.69 89.93 52.98

King Digital Entertainment Quarterly Data
Dec11 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 66.49 84.82 68.53 67.80 37.21

Competitive Comparison of King Digital Entertainment's Return-on-Tangible-Equity

For the Electronic Gaming & Multimedia subindustry, King Digital Entertainment'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.


King Digital Entertainment's Return-on-Tangible-Equity Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, King Digital Entertainment's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where King Digital Entertainment's Return-on-Tangible-Equity falls into.



King Digital Entertainment Return-on-Tangible-Equity Calculation

King Digital Entertainment's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2015 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2015 )  (A: Dec. 2014 )(A: Dec. 2015 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2015 )  (A: Dec. 2014 )(A: Dec. 2015 )
=516.779/( (920.292+1030.42 )/ 2 )
=516.779/975.356
=52.98 %

King Digital Entertainment's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2015 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2015 )  (Q: Sep. 2015 )(Q: Dec. 2015 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2015 )  (Q: Sep. 2015 )(Q: Dec. 2015 )
=362.668/( (918.783+1030.42)/ 2 )
=362.668/974.6015
=37.21 %

* 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 (Dec. 2015) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


King Digital Entertainment  (NYSE:KING) 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.


King Digital Entertainment Return-on-Tangible-Equity Related Terms

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


King Digital Entertainment (King Digital Entertainment) Business Description

Traded in Other Exchanges
N/A
Address
King Digital Entertainment PLC was originally incorporated as Midasplayer.com Limited in September 2002, a company organized under the laws of England and Wales. It is an interactive entertainment company for the mobile world. The Company provides engaging content to its audience to match mobile lifestyles: anywhere, anytime and on any device. Its games include Candy Crush Saga, Pet Rescue Saga, Farm Heroes Saga, Papa Pear Saga and Bubble Witch Saga. The Company makes its games available for free, while players can purchase virtual items priced relative to the entertainment value they provide. It embeds social features in the content that enhances the player experience. The Company develops and publishes casual games on royalgames.com, its tournament portal and on mobile and social platform. Casual games typically include a puzzle element. The Company's competitors include other game developers and emerging and potential game developers.
Executives
Apax Europe Vi-a Lp 10 percent owner 13-15 VICTORIA ROAD ST PETER PORT GUERNSEY X0 00000
Apax Europe Vi-1 Lp 10 percent owner 13-1 VICTORIA RD ST PETER PORT GY1 3ZD GUERNSEY CHANNEL ISLANDS X0 00000
Apax Europe Vi Gp Lp Inc. 10 percent owner 13-15 VICTORIA STREET ST PETER PORT GUERNSEY, CHANNEL ISLANDS X0 GY13ZD
Apax Europe Vi Gp Co. Ltd 10 percent owner 13-15 VICTORIA STREET ST PETER PORT GUERNSEY, CHANNEL ISLANDS X0 GY13ZD
Roy Mackenzie director 601 LEXINGTON AVENUE, 53RD FLOOR, NEW YORK NY 10022

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