What is Deterra Royalties Return-on-Tangible-Equity?
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Deterra Royalties's annualized net income for the quarter that ended in Dec. 2023 was A$157.4 Mil. Deterra Royalties's average shareholder tangible equity for the quarter that ended in Dec. 2023 was A$79.0 Mil. Therefore, Deterra Royalties's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 199.26%.
The historical rank and industry rank for Deterra Royalties's Return-on-Tangible-Equity or its related term are showing as below:
ASX:DRR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 157.28 Med: 178.47 Max: 233.63
Current: 233.63
During the past 3 years, Deterra Royalties's highest Return-on-Tangible-Equity was 233.63%. The lowest was 157.28%. And the median was 178.47%.
ASX:DRR's Return-on-Tangible-Equity is ranked better than 98.66% of 2469
companies
in the Metals & Mining industry
Industry Median: -16.31
vs ASX:DRR: 233.63
Deterra Royalties Return-on-Tangible-Equity Historical Data
The historical data trend for Deterra Royalties's Return-on-Tangible-Equity 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 Deterra Royalties's Return-on-Tangible-Equity
For the Other Industrial Metals & Mining subindustry, Deterra Royalties's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Deterra Royalties's Return-on-Tangible-Equity Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Deterra Royalties's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Deterra Royalties's Return-on-Tangible-Equity falls into.
* 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Deterra Royalties Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Deterra Royalties's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Deterra Royalties was spun out from Iluka Resources in October 2020 with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area, located in the Pilbara region of Western Australia. The royalty area includes the North Flank mine, producing approximately 60 million metric tons of iron ore a year, and the South Flank mine, expected to add a further 85 million metric tons a year by 2024 after producing first ore in 2021. The MAC royalty area also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Deterra's strategy is to grow into a diversified royalty company.
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