What is Fiat Industrial SpA 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. Fiat Industrial SpA's annualized net income for the quarter that ended in Jun. 2013 was €1,088 Mil. Fiat Industrial SpA's average shareholder tangible equity for the quarter that ended in Jun. 2013 was €1,344 Mil. Therefore, Fiat Industrial SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2013 was 80.95%.
The historical rank and industry rank for Fiat Industrial SpA's Return-on-Tangible-Equity or its related term are showing as below:
MIL:FI's Return-on-Tangible-Equity is not ranked *
in the Farm & Heavy Construction Machinery industry.
Industry Median: 8.92 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Fiat Industrial SpA Return-on-Tangible-Equity Historical Data
The historical data trend for Fiat Industrial SpA'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.
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Fiat Industrial SpA Return-on-Tangible-Equity Chart
Competitive Comparison of Fiat Industrial SpA's Return-on-Tangible-Equity
For the Farm & Heavy Construction Machinery subindustry, Fiat Industrial SpA'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.
Fiat Industrial SpA's Return-on-Tangible-Equity Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Fiat Industrial SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Fiat Industrial SpA's Return-on-Tangible-Equity falls into.
Fiat Industrial SpA Return-on-Tangible-Equity Calculation
Fiat Industrial SpA's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2012 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 four times the quarterly (Jun. 2013) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Fiat Industrial SpA (MIL:FI) 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.
Fiat Industrial SpA Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Fiat Industrial SpA's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Fiat Industrial SpA operates in the capital goods sector. Each of the Group's businesses is a major international player in its respective industry sector: Iveco, CNH-Case New Holland and FPT Industrial. These three sectors design, produce and sell trucks, commercial vehicles, buses, special vehicles (Iveco), tractors, and agricultural and construction equipment (CNH), in addition to engines and transmissions for those vehicles and engines for marine applications (FPT Industrial). Agricultural equipment is sold under the New Holland Agriculture and Case IH and, in the premium segment in Europe, Steyr brands. Construction equipment is sold under the New Holland Construction and Case Construction brands, as well as the Kobelco brand in North America. Iveco designs, manufactures and sells a wide range of light (2.8-6 tons GVW), medium (6-16 tons GVW) and heavy (above 16 tons GVW) commercial vehicles for on-road and off-road use. In addition to its main product offer, the Company also offers after-sales and financing services, in addition to services related to used-vehicles. FPT Industrial is specialized in the design, production and sale of propulsion and transmission systems for on- and off-road trucks and commercial vehicles, as well as engines for marine application and power generation.
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