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. Ferguson's annualized net income for the quarter that ended in Jan. 2024 was $1,288 Mil. Ferguson's average shareholder tangible equity for the quarter that ended in Jan. 2024 was $2,379 Mil. Therefore, Ferguson's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2024 was 54.15%.
The historical rank and industry rank for Ferguson's Return-on-Tangible-Equity or its related term are showing as below:
FERG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.46 Med: 45 Max: 98.18
Current: 83.29
During the past 13 years, Ferguson's highest Return-on-Tangible-Equity was 98.18%. The lowest was 12.46%. And the median was 45.00%.
FERG's Return-on-Tangible-Equity is ranked better than 88.81% of 143
companies
in the Industrial Distribution industry
Industry Median: 11.49
vs FERG: 83.29
Ferguson Return-on-Tangible-Equity Historical Data
The historical data trend for Ferguson'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 Ferguson's Return-on-Tangible-Equity
For the Industrial Distribution subindustry, Ferguson'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.
Ferguson's Return-on-Tangible-Equity Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ferguson's Return-on-Tangible-Equity falls into.
Ferguson Return-on-Tangible-Equity Calculation
Ferguson's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jul. 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 (Jan. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
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.
Ferguson Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Ferguson's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the U.S. According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its U.K. business in 2021 and is now solely focused on the North American market.
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