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TE Connectivity (NYSE:TEL) Return-on-Tangible-Equity

: 36.29% (As of Dec. 2022)
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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. TE Connectivity's annualized net income for the quarter that ended in Dec. 2022 was $1,588 Mil. TE Connectivity's average shareholder tangible equity for the quarter that ended in Dec. 2022 was $4,376 Mil. Therefore, TE Connectivity's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2022 was 36.29%.

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

TEL' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.31   Med: 64.03   Max: 99.79
Current: 56.4

During the past 13 years, TE Connectivity's highest Return-on-Tangible-Equity was 99.79%. The lowest was -8.31%. And the median was 64.03%.

TEL's Return-on-Tangible-Equity is ranked better than
95.07% of 2314 companies
in the Hardware industry
Industry Median: 8.33 vs TEL: 56.40

TE Connectivity Return-on-Tangible-Equity Historical Data

The historical data trend for TE Connectivity'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.

TE Connectivity Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Return-on-Tangible-Equity
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 89.97 55.23 -8.31 74.61 62.65

TE Connectivity Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 60.35 59.37 65.41 70.95 36.29

Competitive Comparison

For the Electronic Components subindustry, TE Connectivity'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.

   

TE Connectivity Return-on-Tangible-Equity Distribution

For the Hardware industry and Technology sector, TE Connectivity's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where TE Connectivity's Return-on-Tangible-Equity falls in comparison to its industry or sector. The grey bar indicates the Return-on-Tangible-Equity's extreme value range as defined by GuruFocus.



TE Connectivity Return-on-Tangible-Equity Calculation

TE Connectivity's annualized Return-on-Tangible-Equity for the fiscal year that ended in Sep. 2022 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Sep. 2022 )  (A: Sep. 2021 )(A: Sep. 2022 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Sep. 2022 )  (A: Sep. 2021 )(A: Sep. 2022 )
=2428/( (3495+4256 )/ 2 )
=2428/3875.5
=62.65 %

TE Connectivity's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2022 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2022 )  (Q: Sep. 2022 )(Q: Dec. 2022 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2022 )  (Q: Sep. 2022 )(Q: Dec. 2022 )
=1588/( (4256+4496)/ 2 )
=1588/4376
=36.29 %

* 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. 2022) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


TE Connectivity  (NYSE:TEL) 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.


TE Connectivity Return-on-Tangible-Equity Related Terms

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


TE Connectivity (NYSE:TEL) Business Description

TE Connectivity logo
Traded in Other Exchanges
Address
Muhlenstrasse 26, Schaffhausen, CHE, CH-8200
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE Connectivity has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Syaru Shirley Lin director
Aaron Kyle Stucki officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE, BERWYN PA 19312
Lynn A Dugle director 4803 STONECROFT BOULEVARD, CHANTILLY VA 20151
Dawn C Willoughby director 1221 BROADWAY, OAKLAND CA 94612
Kevin N Rock officer: President, Industrial Solution 1050 WESTLAKES DRIVE, BERWYN PA 19312
David M Kerko director C/O KKR, 9 WEST 57TH STREET, 41ST FLOOR, NEW YORK NY 10019
Shadrak W Kroeger officer: Pres., Communications Solution 1050 WESTLAKES DRIVE, BERWYN PA 19312
Abhijit Y Talwalkar director ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Heath A Mitts officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Tim Murphy officer: SVP & CHRO 1050 WESTLAKES DRIVE, BERWYN PA 19312
Mark Trudeau director COVIDIEN PLC, 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Carol Anthony Davidson director
Laura Wright director 2702 LOVE FIELD DRIVE, P.O. BOX 36611, DALLAS TX 75235-1611
John S Jenkins officer: EVP & General Counsel 1050 WESTLAKES DRIVE, BERWYN PA 19312
Bradley Alan Gambill officer: SVP, Strategy & Business Dev. 1050 WESTLAKES DRIVE, BERWYN PA 19312

TE Connectivity (NYSE:TEL) Headlines

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