Avalara (NYSE:AVLR) Return-on-Tangible-Asset

: -11.78% (As of Jun. 2022)

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Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Avalara's annualized Net Income for the quarter that ended in Jun. 2022 was $-223.4 Mil. Avalara's average total tangible assets for the quarter that ended in Jun. 2022 was $1,896.2 Mil. Therefore, Avalara's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2022 was -11.78%.

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

AVLR's Return-on-Tangible-Asset is not ranked ^*
in the Software industry.
Industry Median: 0.74
* Ranked among companies with meaningful Return-on-Tangible-Asset only.

Avalara Return-on-Tangible-Asset Historical Data

The historical data trend for Avalara's Return-on-Tangible-Asset 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.

Avalara Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Return-on-Tangible-Asset

-77.30

-45.85

-11.23

-6.56

-9.25

Avalara Quarterly Data
	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22
Return-on-Tangible-Asset																-12.41	-8.86	-9.38	-6.78	-11.78

Competitive Comparison

For the Software - Application subindustry, Avalara's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.

Annual Data Quarterly Data

Avalara Return-on-Tangible-Asset Distribution

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

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

Avalara Return-on-Tangible-Asset Calculation

Avalara's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2021 is calculated as:

Return-on-Tangible-Asset	=	Net Income	/	( (Total Tangible Assets	+	Total Tangible Assets)	/ count )
		(A: Dec. 2021 )		(A: Dec. 2020 )		(A: Dec. 2021 )
	=	Net Income	/	( (Total Assets - Intangible Assets	+	Total Assets - Intangible Assets)	/ count )
		(A: Dec. 2021 )		(A: Dec. 2020 )		(A: Dec. 2021 )
	=	-135.618	/	( (1002.586	+	1929.332)	/ 2 )
	=	-135.618	/	1465.959
	=	-9.25 %

Avalara's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2022 is calculated as:

Return-on-Tangible-Asset	=	Net Income	/	( (Total Tangible Assets	+	Total Tangible Assets)	/ count )
		(Q: Jun. 2022 )		(Q: Mar. 2022 )		(Q: Jun. 2022 )
	=	Net Income	/	( (Total Assets - Intangible Assets	+	Total Assets - Intangible Assets)	/ count )
		(Q: Jun. 2022 )		(Q: Mar. 2022 )		(Q: Jun. 2022 )
	=	-223.392	/	( (1912.461	+	1879.986)	/ 2 )
	=	-223.392	/	1896.2235
	=	-11.78 %

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2022) net income data.

Avalara (NYSE:AVLR) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.

Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.

Avalara Return-on-Tangible-Asset Related Terms

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Avalara (NYSE:AVLR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Avalara Inc (NYSE:AVLR) » Definitions » Return-on-Tangible-Asset

Comparable Companies

Traded in Other Exchanges

N/A

Address

255 South King Street, Suite 1800, Seattle, WA, USA, 98104

Website

https://www.avalara.com

Avalara Inc provides compliance solutions. It provides software solutions that help businesses of all types and sizes comply with tax requirements for transactions worldwide. The company offers a broad and growing suite of compliance solutions for transaction taxes, such as sales and use tax, VAT, fuel excise tax, beverage alcohol, cross-border taxes, lodging tax, and communications tax. These solutions enable customers to automate the process of determining taxability, identifying applicable tax rates, determining and collecting taxes, preparing and filing returns, remitting taxes, maintaining tax records, and managing compliance documents. It generates revenue in the form of subscriptions and professional services.

Executives

Marcela Martin	director	C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
Bruce T Crawford	director	255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Srinivas Tallapragada	director	THE LANDMARK AT ONE MARKET STREET, #300, SAN FRANCISCO CA 94105
Ross Tennenbaum	officer: See Remarks	255 S KING ST, STE 1800, SEATTLE WA 98104
Brian Sharples	director	1250 CAPITAL OF TX HWY, BLDG 2, PLAZA 1, AUSTIN TX 78746
Wp Avlr Holdco Llc	10 percent owner	C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Amit Mathradas	officer: See Remarks	255 S KING ST, STE 1800, SEATTLE WA 98104
Kathleen Zwickert	director	255 S KING ST, STE 1800, SEATTLE WA 98104
William Ingram	officer: See Remarks	C/O LEAP WIRELESS INTERNATIONAL, INC., 5887 COPLEY DRIVE, SAN DIEGO CA 92111
Dooren Pascal Van	officer: See Remarks	255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Rajeev Singh	director	6222 185TH AVENUE NE, REDMOND WA 98052
Marion R Foote	director	C/O KINETA, INC., 219 TERRY AVE. N., SUITE 300, SEATTLE WA 98109
Chelsea R. Stoner	director	C/O AVALARA, INC., 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Jared R. Vogt	director	C/O AVALARA, INC., 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Daniel E. Manning	officer: Chief Accounting Officer	255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104