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. Kinder Morgan's annualized net income for the quarter that ended in Mar. 2024 was $2,984 Mil. Kinder Morgan's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $8,300 Mil. Therefore, Kinder Morgan's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 35.95%.
The historical rank and industry rank for Kinder Morgan's Return-on-Tangible-Equity or its related term are showing as below:
KMI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.27 Med: 18.7 Max: 28.45
Current: 28.45
During the past 13 years, Kinder Morgan's highest Return-on-Tangible-Equity was 28.45%. The lowest was 1.27%. And the median was 18.70%.
KMI's Return-on-Tangible-Equity is ranked better than 80.8% of 1005
companies
in the Oil & Gas industry
Industry Median: 8.96
vs KMI: 28.45
Kinder Morgan Return-on-Tangible-Equity Historical Data
The historical data trend for Kinder Morgan'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 Kinder Morgan's Return-on-Tangible-Equity
For the Oil & Gas Midstream subindustry, Kinder Morgan'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.
Kinder Morgan's Return-on-Tangible-Equity Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Kinder Morgan's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kinder Morgan's Return-on-Tangible-Equity falls into.
Kinder Morgan Return-on-Tangible-Equity Calculation
Kinder Morgan's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 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 (Mar. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Kinder Morgan (NYSE:KMI) 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.
Kinder Morgan Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Kinder Morgan's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Kinder Morgan (Kinder Morgan) Business Description
Kinder Morgan is one of the largest midstream energy firms in North America, with an interest in or an operator on about 83,000 miles in pipelines and 140 storage terminals. The company is active in the transportation, storage, and processing of natural gas, crude oil, refined products, natural gas liquids, and carbon dioxide. The majority of Kinder Morgan's cash flows stem from fee-based contracts for handling, moving, and storing fossil fuel products.
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