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RS Group (LSE:RS1) Return-on-Tangible-Equity : 36.07% (As of Sep. 2023)


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What is RS 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. RS Group's annualized net income for the quarter that ended in Sep. 2023 was £184 Mil. RS Group's average shareholder tangible equity for the quarter that ended in Sep. 2023 was £511 Mil. Therefore, RS Group's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2023 was 36.07%.

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

LSE:RS1' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 18.66   Med: 47.27   Max: 79.17
Current: 39.64

During the past 13 years, RS Group's highest Return-on-Tangible-Equity was 79.17%. The lowest was 18.66%. And the median was 47.27%.

LSE:RS1's Return-on-Tangible-Equity is ranked better than
83.8% of 142 companies
in the Industrial Distribution industry
Industry Median: 11.765 vs LSE:RS1: 39.64

RS Group Return-on-Tangible-Equity Historical Data

The historical data trend for RS 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.

RS Group Return-on-Tangible-Equity Chart

RS Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 57.23 46.97 30.49 43.06 44.69

RS Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 43.11 45.15 40.52 40.97 36.07

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

For the Industrial Distribution subindustry, RS 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.


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

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

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



RS Group Return-on-Tangible-Equity Calculation

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

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2023 )  (A: Mar. 2022 )(A: Mar. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2023 )  (A: Mar. 2022 )(A: Mar. 2023 )
=284.8/( (635.2+639.4 )/ 2 )
=284.8/637.3
=44.69 %

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

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2023 )  (Q: Mar. 2023 )(Q: Sep. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2023 )  (Q: Mar. 2023 )(Q: Sep. 2023 )
=184.4/( (639.4+383)/ 2 )
=184.4/511.2
=36.07 %

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


RS Group  (LSE:RS1) 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.


RS Group Return-on-Tangible-Equity Related Terms

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


RS Group (LSE:RS1) Business Description

Traded in Other Exchanges
Address
Two Pancras Square, Fifth Floor, London, GBR, N1C 4AG
RS Group PLC is a distributor of electronics and industrial products. The company provides semiconductors; interconnect, passives, and electromechanical components; automation and control products; and consumables through its two brands: RS and Allied Electronics. The main customer groups are electronic design engineers, machine and panel builders, and maintenance engineers. Electrocomponents' largest distribution channel is online through e-commerce. Other channels include catalogs, trade counters, and an international field sales network.

RS Group (LSE:RS1) Headlines

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