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. Rheinmetall AG's annualized net income for the quarter that ended in Sep. 2023 was €408 Mil. Rheinmetall AG's average shareholder tangible equity for the quarter that ended in Sep. 2023 was €1,468 Mil. Therefore, Rheinmetall AG's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2023 was 27.80%.
The historical rank and industry rank for Rheinmetall AG's Return-on-Tangible-Equity or its related term are showing as below:
WBO:RHM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.16 Med: 24.94 Max: 32.23
Current: 28.23
During the past 13 years, Rheinmetall AG's highest Return-on-Tangible-Equity was 32.23%. The lowest was -2.16%. And the median was 24.94%.
WBO:RHM's Return-on-Tangible-Equity is ranked better than 80.34% of 290
companies
in the Aerospace & Defense industry
Industry Median: 7.695
vs WBO:RHM: 28.23
Rheinmetall AG Return-on-Tangible-Equity Historical Data
The historical data trend for Rheinmetall 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.
Competitive Comparison of Rheinmetall AG's Return-on-Tangible-Equity
For the Aerospace & Defense subindustry, Rheinmetall 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.
Rheinmetall AG's Return-on-Tangible-Equity Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rheinmetall AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rheinmetall AG's Return-on-Tangible-Equity falls into.
Rheinmetall AG Return-on-Tangible-Equity Calculation
Rheinmetall AG's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2022 is calculated as
* 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 (Sep. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Rheinmetall AG (WBO:RHM) 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.
Rheinmetall AG Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Rheinmetall AG's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Rheinmetall is an international group active in various markets with leading technological products and services. The sales focus is on the security technology and mobility segments. Since February 2021, the group structure has been made up of five divisions—vehicle systems, weapon and ammunition, electronic solutions, sensors and actuators, and materials and trade. The vehicle systems, weapon and ammunition, and electronic solutions divisions are among the defense and security industry's leading suppliers of innovative products to German and international defense forces. The sensors and actuators and materials and trade divisions' core area of expertise is the reduction of emissions, pollutants, and fuel consumption.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
WBO:RHM has been successfully added to your 