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. Kumba Iron Ore's annualized net income for the quarter that ended in Dec. 2023 was $1,404 Mil. Kumba Iron Ore's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $2,632 Mil. Therefore, Kumba Iron Ore's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 53.35%.
The historical rank and industry rank for Kumba Iron Ore's Return-on-Tangible-Equity or its related term are showing as below:
KIROY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.34 Med: 42.45 Max: 72.27
Current: 48.9
During the past 13 years, Kumba Iron Ore's highest Return-on-Tangible-Equity was 72.27%. The lowest was 2.34%. And the median was 42.45%.
KIROY's Return-on-Tangible-Equity is ranked better than 96.07% of 611
companies
in the Steel industry
Industry Median: 6.62
vs KIROY: 48.90
Kumba Iron Ore Return-on-Tangible-Equity Historical Data
The historical data trend for Kumba Iron Ore'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.
Competitive Comparison of Kumba Iron Ore's Return-on-Tangible-Equity
For the Steel subindustry, Kumba Iron Ore'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.
Kumba Iron Ore's Return-on-Tangible-Equity Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Kumba Iron Ore's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kumba Iron Ore's Return-on-Tangible-Equity falls into.
Kumba Iron Ore Return-on-Tangible-Equity Calculation
Kumba Iron Ore's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
Kumba Iron Ore (OTCPK:KIROY) 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.
Kumba Iron Ore Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Kumba Iron Ore's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Kumba Iron Ore (Kumba Iron Ore) Business Description
Kumba Iron Ore Ltd is engaged in the exploration, mining, processing blending and sale of iron ore to the global steel industry. The company primarily operates in South Africa, with mining operations in the Northern Cape and Limpopo provinces, as well as a head office in Centurion, Gauteng, and a port operation in Saldanha Bay, Western Cape. The company's flagship asset is the Sishen mine, which it holds a majority stake, located near the town of Kathu in the Northern Cape Province. The Sishen mine is an opencast mine and produces the bulk of the group's iron ore, most of which is exported. It also holds interest in Kolomela mine.
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