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Whitbread (LSE:WTB) Return-on-Tangible-Equity : 1.07% (As of Feb. 2024)


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What is Whitbread 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. Whitbread's annualized net income for the quarter that ended in Feb. 2024 was £38 Mil. Whitbread's average shareholder tangible equity for the quarter that ended in Feb. 2024 was £3,537 Mil. Therefore, Whitbread's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2024 was 1.07%.

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

LSE:WTB' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -25   Med: 13.89   Max: 96.19
Current: 8.51

During the past 13 years, Whitbread's highest Return-on-Tangible-Equity was 96.19%. The lowest was -25.00%. And the median was 13.89%.

LSE:WTB's Return-on-Tangible-Equity is ranked better than
50.13% of 754 companies
in the Travel & Leisure industry
Industry Median: 8.445 vs LSE:WTB: 8.51

Whitbread Return-on-Tangible-Equity Historical Data

The historical data trend for Whitbread'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.

Whitbread Return-on-Tangible-Equity Chart

Whitbread Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.81 -25.00 1.11 7.07 8.59

Whitbread Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 4.19 11.69 2.25 15.29 1.07

Competitive Comparison of Whitbread's Return-on-Tangible-Equity

For the Lodging subindustry, Whitbread'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.


Whitbread's Return-on-Tangible-Equity Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Whitbread's Return-on-Tangible-Equity distribution charts can be found below:

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



Whitbread Return-on-Tangible-Equity Calculation

Whitbread's annualized Return-on-Tangible-Equity for the fiscal year that ended in Feb. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Feb. 2024 )  (A: Feb. 2023 )(A: Feb. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Feb. 2024 )  (A: Feb. 2023 )(A: Feb. 2024 )
=312.1/( (3931.8+3334.4 )/ 2 )
=312.1/3633.1
=8.59 %

Whitbread's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2024 )  (Q: Aug. 2023 )(Q: Feb. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2024 )  (Q: Aug. 2023 )(Q: Feb. 2024 )
=37.8/( (3738.7+3334.4)/ 2 )
=37.8/3536.55
=1.07 %

* 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 (Feb. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Whitbread  (LSE:WTB) 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.


Whitbread Return-on-Tangible-Equity Related Terms

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


Whitbread (LSE:WTB) Business Description

Traded in Other Exchanges
Address
Porz Avenue, Whitbread Court, Houghton Hall Business Park, Dunstable, Bedfordshire, GBR, LU5 5XE
Whitbread PLC owns hotels and restaurants that operate in the United Kingdom. It operates more than 800 hotels under the Premier Inn brand and provides services in relation to accommodation and food both in the UK and internationally. Restaurant brands include Beefeater, Brewers Fayre, Cookhouse & Pub, Bar Block and Others. Geographically the company derives majority of revenue from UK division.

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