Allocate Software (LSE:ALLA) Return-on-Tangible-Equity : 152.76% (As of May. 2014)

Allocate Software Return-on-Tangible-Equity Chart

Allocate Software Annual Data
	Trend	May05	May06	May07	May08	May09	May10	May11	May12	May13	May14
Return-on-Tangible-Equity		Get a 7-Day Free Trial					96.94	105.42	-239.39	-2,204.62	73.91

Allocate Software Semi-Annual Data
	Nov04	May05	Nov05	May06	Nov06	May07	Nov07	May08	Nov08	May09	Nov09	May10	Nov10	May11	Nov11	May12	Nov12	May13	Nov13	May14
Return-on-Tangible-Equity	Get a 7-Day Free Trial															Negative Tangible Equity	-	Negative Tangible Equity	-92.41	152.76

Competitive Comparison of Allocate Software's Return-on-Tangible-Equity

For the Software - Application subindustry, Allocate Software'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.

Allocate Software's Return-on-Tangible-Equity Distribution in the Software Industry

For the Software industry and Technology sector, Allocate Software's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Allocate Software's Return-on-Tangible-Equity falls into.

Allocate Software Return-on-Tangible-Equity Calculation

Allocate Software's annualized Return-on-Tangible-Equity for the fiscal year that ended in May. 2014 is calculated as

Allocate Software's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2014 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 (May. 2014) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

Allocate Software  (LSE:ALLA) 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.

Allocate Software Return-on-Tangible-Equity Related Terms

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

Allocate Software (LSE:ALLA) Business Description