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. Deere's annualized net income for the quarter that ended in Jan. 2024 was $7,004 Mil. Deere's average shareholder tangible equity for the quarter that ended in Jan. 2024 was $16,650 Mil. Therefore, Deere's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2024 was 42.07%.
The historical rank and industry rank for Deere's Return-on-Tangible-Equity or its related term are showing as below:
DE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.38 Med: 35.61 Max: 64.99
Current: 58.89
During the past 13 years, Deere's highest Return-on-Tangible-Equity was 64.99%. The lowest was 26.38%. And the median was 35.61%.
DE's Return-on-Tangible-Equity is ranked better than 90.1% of 202
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.5
vs DE: 58.89
Deere Return-on-Tangible-Equity Historical Data
The historical data trend for Deere'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 Deere's Return-on-Tangible-Equity
For the Farm & Heavy Construction Machinery subindustry, Deere'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.
Deere's Return-on-Tangible-Equity Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Deere's Return-on-Tangible-Equity falls into.
Deere Return-on-Tangible-Equity Calculation
Deere's annualized Return-on-Tangible-Equity for the fiscal year that ended in Oct. 2023 is calculated as
* 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 four times the quarterly (Jan. 2024) 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.
Deere Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Deere's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through an extensive dealer network, which includes over 2,000 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.
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