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. CLP Holdings's annualized net income for the quarter that ended in Dec. 2023 was $426 Mil. CLP Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $11,375 Mil. Therefore, CLP Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 3.75%.
The historical rank and industry rank for CLP Holdings's Return-on-Tangible-Equity or its related term are showing as below:
CLPHF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.17 Med: 14.68 Max: 24.03
Current: 7.58
During the past 13 years, CLP Holdings's highest Return-on-Tangible-Equity was 24.03%. The lowest was 1.17%. And the median was 14.68%.
CLPHF's Return-on-Tangible-Equity is ranked worse than 64.82% of 506
companies
in the Utilities - Regulated industry
Industry Median: 10.795
vs CLPHF: 7.58
CLP Holdings Return-on-Tangible-Equity Historical Data
The historical data trend for CLP Holdings'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 CLP Holdings's Return-on-Tangible-Equity
For the Utilities - Regulated Electric subindustry, CLP Holdings'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.
CLP Holdings's Return-on-Tangible-Equity Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, CLP Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where CLP Holdings'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.
CLP Holdings Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of CLP Holdings's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
CLP Holdings is the larger of the two electric utility companies in Hong Kong, serving 80% of the city population. It generates, transmits and distributes electricity to about 2.6 million customers in Kowloon and the New Territories through its wholly owned network. The business is regulated by the Hong Kong government with a permitted return on net fixed asset of 8.00%. Besides Hong Kong, the company has expanded its reach overseas, with generation and retail assets in Australia and generation assets in China, India, Taiwan, and Southeast Asia. Its Hong Kong activities made up more than 80% of recurring net profit in 2021.
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