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. Ferguson's annualizedNet Income for the quarter that ended in Jan. 2024 was $1,288 Mil. Ferguson's average total tangible assets for the quarter that ended in Jan. 2024 was $13,042 Mil. Therefore, Ferguson's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2024 was 9.88%.
The historical rank and industry rank for Ferguson's Return-on-Tangible-Asset or its related term are showing as below:
FERG'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.41 Med: 10.93 Max: 17.56
Current: 13.76
During the past 13 years, Ferguson's highest Return-on-Tangible-Asset was 17.56%. The lowest was 3.41%. And the median was 10.93%.
FERG's Return-on-Tangible-Asset is ranked better than 87.59% of 145
companies
in the Industrial Distribution industry
Industry Median: 5.02
vs FERG: 13.76
Ferguson Return-on-Tangible-Asset Historical Data
The historical data trend for Ferguson'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 Ferguson's Return-on-Tangible-Asset
For the Industrial Distribution subindustry, Ferguson'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.
Ferguson's Return-on-Tangible-Asset Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Ferguson's Return-on-Tangible-Asset falls into.
Ferguson Return-on-Tangible-Asset Calculation
Ferguson's annualized Return-on-Tangible-Asset for the fiscal year that ended in Jul. 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.
Ferguson Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Ferguson's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the U.S. According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its U.K. business in 2021 and is now solely focused on the North American market.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FERG has been successfully added to your 