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. Otis Worldwide's annualizedNet Income for the quarter that ended in Sep. 2020 was $1,064 Mil. Otis Worldwide's average total tangible assets for the quarter that ended in Sep. 2020 was $8,314 Mil. Therefore, Otis Worldwide's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2020 was 12.80%.
NYSE:OTIS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 11.04 Med: 15.36 Max: 15.47
Current: 11.04
11.04
-
15.47
During the past 3 years, Otis Worldwide's highest Return-on-Tangible-Asset was 15.47%. The lowest was 11.04%. And the median was 15.36%.
NYSE:OTIS's Return-on-Tangible-Asset is ranked higher than
91% of the 2562
Companies
in the Industrial Products industry.
( Industry Median: 2.76
vs. NYSE:OTIS: 11.04
)
Otis Worldwide 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.
Otis Worldwide Annual Data
Dec17
Dec18
Dec19
Return-on-Tangible-Asset
0.00
15.25
15.47
Otis Worldwide Quarterly Data
Dec17
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Return-on-Tangible-Asset
0.00
11.55
8.80
11.34
12.80
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.
Otis Worldwide Return-on-Tangible-Asset Distribution
* The bar in red indicates where Otis Worldwide's Return-on-Tangible-Asset falls into.
* 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-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 (Sep. 2020) 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.
Otis Worldwide Return-on-Tangible-Asset Related Terms
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