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Steris Return-on-Tangible-Equity

: 142.69%% (As of Dec. 2018)
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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. Steris's annualized net income attributable to common stockholders for the quarter that ended in Dec. 2018 was $191 Mil. Steris's average shareholder tangible equity for the quarter that ended in Dec. 2018 was $134 Mil. Therefore, Steris's annualized return on tangible equity (ROTE) for the quarter that ended in Dec. 2018 was 142.69 %%.

NYSE:STE' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.18   Max: 360.64
Current: 360.64
11.18
360.64

During the past 13 years, Steris's highest Return on Tangible Equity (ROTE) was 360.64%. The lowest was 11.18%. And the median was 29.84%.

NYSE:STE's Return-on-Tangible-Equity is ranked higher than
85% of the 119 Companies
in the Medical Instruments & Equipment industry.

( Industry Median: 18.44 vs. NYSE:STE: 360.64 )

Steris 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.

Steris Annual Data
Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18
Return-on-Tangible-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 48.71 53.81 Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Steris Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
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 Negative Tangible Equity 1,190.35 558.65 377.77 142.69
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.

Steris Return-on-Tangible-Equity Distribution

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


Steris Return-on-Tangible-Equity Calculation

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

ROTE=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(A: Mar. 2018 )  (A: Mar. 2017 )(A: Mar. 2018 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ 2 )
(A: Mar. 2018 )  (A: Mar. 2017 )(A: Mar. 2018 )
=290.915/( (-157.588+45.196 )/ 2 )
=290.915/-56.196
=Negative Tangible Equity %

Steris's annualized Return on Tangible Equity (ROTE) for the quarter that ended in Dec. 2018 is calculated as

ROTE=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(Q: Dec. 2018 )  (Q: Sep. 2018 )(Q: Dec. 2018 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ 2 )
(Q: Dec. 2018 )  (Q: Sep. 2018 )(Q: Dec. 2018 )
=191.432/( (108.997+159.322)/ 2 )
=191.432/134.1595
=142.69 % %

* 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 (Dec. 2018) net income attributable to common stockholders data. Return on Equity is displayed in the 10-year financial page.

Steris  (NYSE:STE) 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.

Steris Return-on-Tangible-Equity Related Terms

Steris Return-on-Tangible-Equity Headlines

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