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IPD Group (ASX:IPG) Return-on-Tangible-Equity : 20.58% (As of Dec. 2023)


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What is IPD Group 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. IPD Group's annualized net income for the quarter that ended in Dec. 2023 was A$19.1 Mil. IPD Group's average shareholder tangible equity for the quarter that ended in Dec. 2023 was A$92.7 Mil. Therefore, IPD Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 20.58%.

The historical rank and industry rank for IPD Group's Return-on-Tangible-Equity or its related term are showing as below:

ASX:IPG' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.68   Med: 25.3   Max: 27.86
Current: 21.68

During the past 3 years, IPD Group's highest Return-on-Tangible-Equity was 27.86%. The lowest was 21.68%. And the median was 25.30%.

ASX:IPG's Return-on-Tangible-Equity is ranked better than
84.88% of 2924 companies
in the Industrial Products industry
Industry Median: 7.89 vs ASX:IPG: 21.68

IPD Group Return-on-Tangible-Equity Historical Data

The historical data trend for IPD Group'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.

* Premium members only.

IPD Group Return-on-Tangible-Equity Chart

IPD Group Annual Data
Trend Jun21 Jun22 Jun23
Return-on-Tangible-Equity
- 22.74 27.86

IPD Group Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23
Return-on-Tangible-Equity 20.23 25.42 28.90 26.74 20.58

Competitive Comparison of IPD Group's Return-on-Tangible-Equity

For the Specialty Industrial Machinery subindustry, IPD Group'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.


IPD Group's Return-on-Tangible-Equity Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, IPD Group's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where IPD Group's Return-on-Tangible-Equity falls into.



IPD Group Return-on-Tangible-Equity Calculation

IPD Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jun. 2023 )  (A: Jun. 2022 )(A: Jun. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jun. 2023 )  (A: Jun. 2022 )(A: Jun. 2023 )
=16.077/( (52.973+62.456 )/ 2 )
=16.077/57.7145
=27.86 %

IPD Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=19.09/( (62.456+123.042)/ 2 )
=19.09/92.749
=20.58 %

* 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.


IPD Group  (ASX:IPG) Return-on-Tangible-Equity Explanation

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.


IPD Group Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of IPD Group's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


IPD Group (ASX:IPG) Business Description

Traded in Other Exchanges
N/A
Address
43-47 Newton Road, Wetherill Park, Sydney, NSW, AUS, 2164
IPD Group Ltd serves the electrical industry. The company's core focus is power distribution, power monitoring, industrial control, renewables, test and measurement, and services, across a range of verticals such as power generation, commercial, hospitality, infrastructure, and sports and leisure facilities. Its segment includes Products division and Services division. The company generates maximum revenue from the Products division segment. The company's product division consists of five different types of product categories namely, Power distribution, Industrial and motor control, Automation and industrial communication, Power monitoring, Electric vehicle solutions.