GEA Group AG (OTCPK:GEAGF) Return-on-Tangible-Equity

: 72.33% (As of Mar. 2023)

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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. GEA Group AG's annualized net income for the quarter that ended in Mar. 2023 was $350 Mil. GEA Group AG's average shareholder tangible equity for the quarter that ended in Mar. 2023 was $484 Mil. Therefore, GEA Group AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 was 72.33%.

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

GEAGF' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -95.01 Med: 45.85 Max: 244
Current: 96.89

During the past 13 years, GEA Group AG's highest Return-on-Tangible-Equity was 244.00%. The lowest was -95.01%. And the median was 45.85%.

GEAGF's Return-on-Tangible-Equity is ranked better than
95.9% of 2732 companies
in the Industrial Products industry
Industry Median: 7.76 vs GEAGF: 96.89

GEA Group AG Return-on-Tangible-Equity Historical Data

The historical data trend for GEA Group AG'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.

GEA Group AG Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Return-on-Tangible-Equity

49.33

-93.69

112.30

241.25

123.43

GEA Group AG Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Return-on-Tangible-Equity																104.03	81.91	94.79	133.88	72.33

Competitive Comparison

For the Specialty Industrial Machinery subindustry, GEA Group AG'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.

Annual Data Quarterly Data

GEA Group AG Return-on-Tangible-Equity Distribution

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

* The bar in red indicates where GEA Group AG's Return-on-Tangible-Equity falls in comparison to its industry or sector. The grey bar indicates the Return-on-Tangible-Equity's extreme value range as defined by GuruFocus.

GEA Group AG Return-on-Tangible-Equity Calculation

GEA Group AG's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2022 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	425.244	/	( (240.715	+	448.305 )	/ 2 )
	=	425.244	/	344.51
	=	123.43 %

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

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(Q: Mar. 2023 )		(Q: Dec. 2022 )		(Q: Mar. 2023 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets)	/ count )
		(Q: Mar. 2023 )		(Q: Dec. 2022 )		(Q: Mar. 2023 )
	=	349.844	/	( (448.305	+	519.003)	/ 2 )
	=	349.844	/	483.654
	=	72.33 %

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 (Mar. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

GEA Group AG (OTCPK:GEAGF) 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.

GEA Group AG Return-on-Tangible-Equity Related Terms

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GEA Group AG (OTCPK:GEAGF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » GEA Group AG (OTCPK:GEAGF) » Definitions » Return-on-Tangible-Equity

Comparable Companies

Traded in Other Exchanges

G1A:Mexico G1AD:UK 0MPJ:UK G1A:Germany

Address

Peter-Muller-Strasse 12, Dusseldorf, DEU, 40468

Website

https://www.gea.com

GEA is an expert in food processing. It manufactures equipment for separation, fluid handling, dairy processing, and dairy farming, and it designs and constructs process lines or entire plants for customers. Based in Germany, the company is a global market leader, with number-one or number-two positions in its markets. Its separators are used in hundreds of different, tailored applications. Every fourth litre of milk, third instant coffee line, third chicken nugget, and second litre of beer globally is processed using GEA Group's specialised equipment.