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. Alamo Group's annualized net income for the quarter that ended in Dec. 2023 was $126 Mil. Alamo Group's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $545 Mil. Therefore, Alamo Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 23.14%.
The historical rank and industry rank for Alamo Group's Return-on-Tangible-Equity or its related term are showing as below:
ALG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.43 Med: 22.37 Max: 28.33
Current: 27.56
During the past 13 years, Alamo Group's highest Return-on-Tangible-Equity was 28.33%. The lowest was 15.43%. And the median was 22.37%.
ALG's Return-on-Tangible-Equity is ranked better than 79.21% of 202
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.66
vs ALG: 27.56
Alamo Group Return-on-Tangible-Equity Historical Data
The historical data trend for Alamo 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.
For the Farm & Heavy Construction Machinery subindustry, Alamo 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.
Alamo Group Return-on-Tangible-Equity Distribution
For the Farm & Heavy Construction Machinery industry and Industrials sector, Alamo Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alamo Group's Return-on-Tangible-Equity falls into.
Alamo Group Return-on-Tangible-Equity Calculation
Alamo Group'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 (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Alamo Group (NYSE:ALG) 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.
Alamo Group Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Alamo Group's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Alamo Group Inc is engaged in the design and manufacturing of agricultural equipment and infrastructure maintenance equipment. Its products include tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, excavators, vacuum trucks, snow removal equipment, leaf collection equipment, pothole patchers, zero-turn radius mowers, agricultural implements, and related aftermarket parts. The company's reportable segments are Vegetation Management and Industrial Equipment. It generates a majority of its revenue from Vegetation Management. Geographically, the company generates majority of the revenue from the United States.
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