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. Kumba Iron Ore's annualizedNet Income for the quarter that ended in Dec. 2023 was $1,404 Mil. Kumba Iron Ore's average total tangible assets for the quarter that ended in Dec. 2023 was $4,963 Mil. Therefore, Kumba Iron Ore's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was 28.29%.
The historical rank and industry rank for Kumba Iron Ore's Return-on-Tangible-Asset or its related term are showing as below:
KIROY'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.94 Med: 21.54 Max: 40.47
Current: 25.43
During the past 13 years, Kumba Iron Ore's highest Return-on-Tangible-Asset was 40.47%. The lowest was 0.94%. And the median was 21.54%.
KIROY's Return-on-Tangible-Asset is ranked better than 98.25% of 628
companies
in the Steel industry
Industry Median: 3.085
vs KIROY: 25.43
Kumba Iron Ore Return-on-Tangible-Asset Historical Data
The historical data trend for Kumba Iron Ore'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 Kumba Iron Ore's Return-on-Tangible-Asset
For the Steel subindustry, Kumba Iron Ore'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.
Kumba Iron Ore's Return-on-Tangible-Asset Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Kumba Iron Ore's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Kumba Iron Ore's Return-on-Tangible-Asset falls into.
Kumba Iron Ore Return-on-Tangible-Asset Calculation
Kumba Iron Ore's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 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 two times the semi-annual (Dec. 2023) net income data.
Kumba Iron Ore (OTCPK:KIROY) 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.
Kumba Iron Ore Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Kumba Iron Ore's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Kumba Iron Ore (Kumba Iron Ore) Business Description
Kumba Iron Ore Ltd is engaged in the exploration, mining, processing blending and sale of iron ore to the global steel industry. The company primarily operates in South Africa, with mining operations in the Northern Cape and Limpopo provinces, as well as a head office in Centurion, Gauteng, and a port operation in Saldanha Bay, Western Cape. The company's flagship asset is the Sishen mine, which it holds a majority stake, located near the town of Kathu in the Northern Cape Province. The Sishen mine is an opencast mine and produces the bulk of the group's iron ore, most of which is exported. It also holds interest in Kolomela mine.
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