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Carpenter Technology Return-on-Tangible-Equity

: 18.02%% (As of Mar. 2019)
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Return on tangible equity is calculated as Net Income attributable to Common Stockholders divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Carpenter Technology's annualized net income attributable to common stockholders for the quarter that ended in Mar. 2019 was $204 Mil. Carpenter Technology's average shareholder tangible equity for the quarter that ended in Mar. 2019 was $1,134 Mil. Therefore, Carpenter Technology's annualized return on tangible equity (ROTE) for the quarter that ended in Mar. 2019 was 18.02 %%.

NYSE:CRS' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.39   Max: 18.46
Current: 14.1

0.39
18.46

During the past 13 years, Carpenter Technology's highest Return on Tangible Equity (ROTE) was 18.46%. The lowest was 0.39%. And the median was 9.35%.

NYSE:CRS's Return-on-Tangible-Equity is ranked higher than
60% of the 1527 Companies
in the Industrial Products industry.

( Industry Median: 11.31 vs. NYSE:CRS: 14.10 )

Carpenter Technology Return-on-Tangible-Equity Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Carpenter Technology Annual Data

Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18
Return-on-Tangible-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.51 5.42 1.25 5.60 18.46

Carpenter Technology Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
Return-on-Tangible-Equity 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 Premium Member Only Premium Member Only Premium Member Only 11.79 15.00 10.79 12.38 18.02

Competitive Comparison
* 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.


Carpenter Technology Return-on-Tangible-Equity Distribution

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



Carpenter Technology Return-on-Tangible-Equity Calculation

Carpenter Technology's annualized Return on Tangible Equity (ROTE) for the fiscal year that ended in Jun. 2018 is calculated as

ROTE=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(A: Jun. 2018 )  (A: Jun. 2017 )(A: Jun. 2018 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ 2 )
(A: Jun. 2018 )  (A: Jun. 2017 )(A: Jun. 2018 )
=186.8/( (870.3+1153.9 )/ 2 )
=186.8/1012.1
=18.46 % %

Carpenter Technology's annualized Return on Tangible Equity (ROTE) for the quarter that ended in Mar. 2019 is calculated as

ROTE=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(Q: Mar. 2019 )  (Q: Dec. 2018 )(Q: Mar. 2019 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ 2 )
(Q: Mar. 2019 )  (Q: Dec. 2018 )(Q: Mar. 2019 )
=204.4/( (1108.3+1160.3)/ 2 )
=204.4/1134.3
=18.02 % %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual return on tangible equity, the net income attributable to common stockholders 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 attributable to common stockholders data used here is four times the quarterly (Mar. 2019) net income attributable to common stockholders data. Return on Equity is displayed in the 10-year financial page.


Carpenter Technology  (NYSE:CRS) Return-on-Tangible-Equity Explanation

Return on Tangible Equity (ROTE) 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). ROTE shows how well a company uses investment funds to generate earnings growth. ROTEs between 15% and 20% are considered desirable.


Be Aware

Net income attributable to common stockholders 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 ROTE companies. Like Return-on-Tangible-Asset, ROTE 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 ROTEs can be extremely high.


Carpenter Technology Return-on-Tangible-Equity Explanation


Carpenter Technology Return-on-Tangible-Equity Headlines

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