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Rational AG (Rational AG) Return-on-Tangible-Equity : 33.64% (As of Dec. 2023)


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What is Rational AG 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. Rational AG's annualized net income for the quarter that ended in Dec. 2023 was $250 Mil. Rational AG's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $744 Mil. Therefore, Rational AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 33.64%.

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

RATIY' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.42   Med: 34.99   Max: 38.24
Current: 32.12

During the past 13 years, Rational AG's highest Return-on-Tangible-Equity was 38.24%. The lowest was 15.42%. And the median was 34.99%.

RATIY's Return-on-Tangible-Equity is ranked better than
91.41% of 2923 companies
in the Industrial Products industry
Industry Median: 7.89 vs RATIY: 32.12

Rational AG Return-on-Tangible-Equity Historical Data

The historical data trend for Rational AG'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.

Rational AG Return-on-Tangible-Equity Chart

Rational AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.45 16.11 21.25 28.68 31.76

Rational AG Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 40.01 30.33 33.19 32.67 33.64

Competitive Comparison of Rational AG's Return-on-Tangible-Equity

For the Specialty Industrial Machinery subindustry, Rational AG'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.


Rational AG's Return-on-Tangible-Equity Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Rational AG's Return-on-Tangible-Equity distribution charts can be found below:

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



Rational AG Return-on-Tangible-Equity Calculation

Rational AG's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=235.291/( (699.43+782.308 )/ 2 )
=235.291/740.869
=31.76 %

Rational AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=250.188/( (705.124+782.308)/ 2 )
=250.188/743.716
=33.64 %

* 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.


Rational AG  (OTCPK:RATIY) 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.


Rational AG Return-on-Tangible-Equity Related Terms

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


Rational AG (Rational AG) Business Description

Traded in Other Exchanges
Address
Siegfried-Meister-Strasse 1, Landsberg am Lech, BY, DEU, 86899
Rational specializes in manufacturing automated multifunctional ovens for professional kitchens that replace conventional cooking appliances such as a stove, grill, and oven. Rational has produced over 1 million combi-steamers since its first combi-steamer in 1976, which are used to prepare 140 million food dishes daily. Approximately 72% of group revenue is generated from the sale of cooking appliances, mostly the iCombi Pro that was launched in May 2020 and its predecessor product. Rational has a presence in over 120 countries. The majority of revenue is earned in Europe, followed by North America and Asia.

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