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Reynolds American Return-on-Tangible-Asset

: 51.20% (As of Mar. 2017)
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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. Reynolds American's annualized Net Income for the quarter that ended in Mar. 2017 was $3,120 Mil. Reynolds American's average total tangible assets for the quarter that ended in Mar. 2017 was $6,094 Mil. Therefore, Reynolds American's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2017 was 51.20%.


Reynolds American 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.

Reynolds American Annual Data
Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Return-on-Tangible-Asset Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.68 31.05 30.21 51.95 90.49

Reynolds American Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 170.59 41.68 54.35 56.69 51.20

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.


Reynolds American Return-on-Tangible-Asset Distribution

* The bar in red indicates where Reynolds American's Return-on-Tangible-Asset falls into.



Reynolds American Return-on-Tangible-Asset Calculation

Reynolds American's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2016 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=6073/( (7764+5659)/ 2 )
=6073/6711.5
=90.49 %

Reynolds American's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2017 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2017 )  (Q: Dec. 2016 )(Q: Mar. 2017 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2017 )  (Q: Dec. 2016 )(Q: Mar. 2017 )
=3120/( (5659+6529)/ 2 )
=3120/6094
=51.20 %

* 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 (Mar. 2017) net income data.


Reynolds American  (NYSE:RAI) 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 company’s 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 company’s 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.


Reynolds American Return-on-Tangible-Asset Related Terms


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