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E*TRADE Financial Return-on-Tangible-Asset

: 1.87% (As of Sep. 2019)
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Return on tangible assets is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. E*TRADE Financial's annualized Net Income for the quarter that ended in Sep. 2019 was $1,096 Mil. E*TRADE Financial's average total tangible assets for the quarter that ended in Sep. 2019 was $58,710 Mil. Therefore, E*TRADE Financial's annualized return on tangible assests (ROTA) for the quarter that ended in Sep. 2019 was 1.87%.

NAS:ETFC' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -2.84   Max: 1.72
Current: 1.72

-2.84
1.72

During the past 13 years, E*TRADE Financial's highest Return on Tangible Assets (ROTA) was 1.72%. The lowest was -2.84%. And the median was 0.49%.

NAS:ETFC's Return-on-Tangible-Asset is ranked higher than
57% of the 729 Companies
in the Capital Markets industry.

( Industry Median: 1.15 vs. NAS:ETFC: 1.72 )

E*TRADE Financial Return-on-Tangible-Asset Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

E*TRADE Financial Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Return-on-Tangible-Asset Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.67 0.62 1.23 1.15 1.71

E*TRADE Financial Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
Return-on-Tangible-Asset 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 Premium Member Only Premium Member Only Premium Member Only 1.85 1.74 1.83 1.42 1.87

Competitive Comparison
* 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.


E*TRADE Financial Return-on-Tangible-Asset Distribution

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



E*TRADE Financial Return-on-Tangible-Asset Calculation

E*TRADE Financial's annualized Return on Tangible Assets (ROTA) for the fiscal year that ended in Dec. 2018 is calculated as:

ROTA=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ 2 )
(A: Dec. 2018 )  (A: Dec. 2017 )(A: Dec. 2018 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ 2 )
(A: Dec. 2018 )  (A: Dec. 2017 )(A: Dec. 2018 )
=1052/( (60711+62027)/ 2 )
=1052/61369
=1.71 %

E*TRADE Financial's annualized Return on Tangible Assets (ROTA) for the quarter that ended in Sep. 2019 is calculated as:

ROTA=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ 2 )
(Q: Sep. 2019 )  (Q: Jun. 2019 )(Q: Sep. 2019 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ 2 )
(Q: Sep. 2019 )  (Q: Jun. 2019 )(Q: Sep. 2019 )
=1096/( (58644+58776)/ 2 )
=1096/58710
=1.87 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual return on tangible assets, 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 (Sep. 2019) net income data.


E*TRADE Financial  (NAS:ETFC) Return-on-Tangible-Asset Explanation

Return on tangible assets (ROTA) 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." ROTA measures a firm's efficiency at generating profits from its tangible assets. ROTA shows how well a company uses what it has to generate earnings. ROTAs can vary drastically across industries. Therefore, return on tangible assets should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, ROTA is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROTA can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. ROTA 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 ROTA may indicate vulnerability in the durability of the competitive advantage.


E*TRADE Financial Return-on-Tangible-Asset Related Terms


E*TRADE Financial Return-on-Tangible-Asset Headlines

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