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
95.13% of 2318 companies
in the Hardware industry
Industry Median: 7.74 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

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																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.

Annual Data Quarterly Data

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 %

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

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » TE Connectivity Ltd (NYSE:TEL) » Definitions » Return-on-Tangible-Equity

Comparable Companies

Traded in Other Exchanges

T1EL34:Brazil

Address

Muhlenstrasse 26, Schaffhausen, CHE, CH-8200

Website

https://www.te.com

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