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Ventas (Ventas) Return-on-Tangible-Equity

: -5.09% (As of Dec. 2023)
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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. Ventas's annualized net income for the quarter that ended in Dec. 2023 was $-363 Mil. Ventas's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $7,143 Mil. Therefore, Ventas's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was -5.09%.

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

VTR' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.59   Med: 5.5   Max: 16.76
Current: -0.55

During the past 13 years, Ventas's highest Return-on-Tangible-Equity was 16.76%. The lowest was -0.59%. And the median was 5.50%.

VTR's Return-on-Tangible-Equity is ranked worse than
72.93% of 798 companies
in the REITs industry
Industry Median: 4.595 vs VTR: -0.55

Ventas Return-on-Tangible-Equity Historical Data

The historical data trend for Ventas'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.

Ventas Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.50 5.50 0.60 -0.59 -0.56

Ventas 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 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 -2.29 0.89 5.36 -3.87 -5.09

Competitive Comparison

For the REIT - Healthcare Facilities subindustry, Ventas'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.


Ventas Return-on-Tangible-Equity Distribution

For the REITs industry and Real Estate sector, Ventas's Return-on-Tangible-Equity distribution charts can be found below:

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



Ventas Return-on-Tangible-Equity Calculation

Ventas'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 )
=-40.973/( (7755.97+6989.152 )/ 2 )
=-40.973/7372.561
=-0.56 %

Ventas'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 )
=-363.276/( (7297.251+6989.152)/ 2 )
=-363.276/7143.2015
=-5.09 %

* 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.


Ventas  (NYSE:VTR) 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.


Ventas Return-on-Tangible-Equity Related Terms

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


Ventas (Ventas) Business Description

Industry
Traded in Other Exchanges
Address
353 North Clark Street, Suite 3300, Chicago, IL, USA, 60654
Ventas owns a diversified healthcare portfolio of nearly 1,400 in-place properties spread across the senior housing, medical office, hospital, life science, and skilled nursing/post-acute care. The portfolio includes over 40 properties in Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to the United States. The firm also owns mortgages and other loans, contributing about 3% of net operating income.
Executives
Walter C Rakowich director 14100 E 35TH PL, AURORA CO 80011
Debra A Cafaro director, officer: Chairman, President and CEO 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
Sumit Roy director 600 LA TERRAZA BOULEVARD, ESCONDIDO CA 92025
Michael J Embler director C/O NMI HOLDINGS, INC., 2100 POWELL STREET, EMERYVILLE CA 94608
Robert D. Reed director 47 DONALD DRIVE, ORINDA CA 94563
James D Shelton director 3901 TURTLE CREEK BLVD. #12, DALLAS TX 75219
Richard I Gilchrist director 5950 SHERRY LANE, SUITE 700, DALLAS TX 75225
Robert F Probst officer: EVP, CFO and Acting CAO 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
Gregory R Liebbe officer: SVP, Chief Accounting Officer 500 N. HURSTBOURNE PARKWAY, SUITE 200, LOUISVILLE KY 40222
Maurice S Smith director 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
Marguerite M Nader director 2S601 AVENUE LA TOURS, OAK BROOK IL 60523
Carey S. Roberts officer: EVP and GC C/O VENTAS, INC., 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
James Justin Hutchens officer: EVP Sr Housing North America C/O VENTAS, INC., 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
John D. Cobb officer: SVP & Chief Investment Officer 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654
Sean P. Nolan director C/O INTERMUNE, INC., 3280 BAYSHORE BLVD., BRISBANE CA 94005

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