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. Deere's annualizedNet Income for the quarter that ended in Jan. 2024 was $7,004 Mil. Deere's average total tangible assets for the quarter that ended in Jan. 2024 was $97,449 Mil. Therefore, Deere's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2024 was 7.19%.
The historical rank and industry rank for Deere's Return-on-Tangible-Asset or its related term are showing as below:
DE'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.67 Med: 4.4 Max: 11.09
Current: 10.53
During the past 13 years, Deere's highest Return-on-Tangible-Asset was 11.09%. The lowest was 2.67%. And the median was 4.40%.
DE's Return-on-Tangible-Asset is ranked better than 83.25% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 4.06
vs DE: 10.53
Deere Return-on-Tangible-Asset Historical Data
The historical data trend for Deere'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.
Competitive Comparison of Deere's Return-on-Tangible-Asset
For the Farm & Heavy Construction Machinery subindustry, Deere'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.
Deere's Return-on-Tangible-Asset Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Deere's Return-on-Tangible-Asset falls into.
Deere Return-on-Tangible-Asset Calculation
Deere's annualized Return-on-Tangible-Asset for the fiscal year that ended in Oct. 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-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 (Jan. 2024) net income data.
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.
Deere Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Deere's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through an extensive dealer network, which includes over 2,000 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.
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