Switch to:

Return-on-Tangible-Asset

: 0.00% (As of . 20)
View and export this data going back to 1990. Start your Free Trial

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. 's annualized Net Income for the quarter that ended in . 20 was $ Mil. 's average total tangible assets for the quarter that ended in . 20 was $ Mil. Therefore, 's annualized return on tangible assests (ROTA) for the quarter that ended in . 20 was 0.00%.


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.

Annual Data
Return-on-Tangible-Asset

Semi-Annual Data
Return-on-Tangible-Asset

Return-on-Tangible-Asset Calculation

's annualized Return on Tangible Assets (ROTA) for the fiscal year that ended in . 20 is calculated as:

ROTA=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ 2 )
(A: . 20 )  (A: . 20 )(A: . 20 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ 2 )
(A: . 20 )  (A: . 20 )(A: . 20 )
=/( (+)/ 2 )
=/
= %

's annualized Return on Tangible Assets (ROTA) for the quarter that ended in . 20 is calculated as:

ROTA=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ 2 )
(Q: . 20 )  (Q: . 20 )(Q: . 20 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ 2 )
(Q: . 20 )  (Q: . 20 )(Q: . 20 )
=/( (+)/ 2 )
=/
= %

* 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 one times the annual (. 20) net income data.


  (:) 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.


Return-on-Tangible-Asset Related Terms

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)