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Aon (AON) Return-on-Tangible-Asset : 14.11% (As of Mar. 2025)


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What is Aon Return-on-Tangible-Asset?

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Aon's annualized Net Income for the quarter that ended in Mar. 2025 was $3,860 Mil. Aon's average total tangible assets for the quarter that ended in Mar. 2025 was $27,365 Mil. Therefore, Aon's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 was 14.11%.

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

AON' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 5.48   Med: 8.24   Max: 11.03
Current: 8.86

During the past 13 years, Aon's highest Return-on-Tangible-Asset was 11.03%. The lowest was 5.48%. And the median was 8.24%.

AON's Return-on-Tangible-Asset is ranked better than
91.67% of 492 companies
in the Insurance industry
Industry Median: 2.55 vs AON: 8.86

Aon Return-on-Tangible-Asset Historical Data

The historical data trend for Aon's Return-on-Tangible-Asset 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.

Aon Return-on-Tangible-Asset Chart

Aon Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.10 5.48 11.03 10.41 10.15

Aon Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Asset 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 14.89 6.80 4.83 10.52 14.11

Competitive Comparison of Aon's Return-on-Tangible-Asset

For the Insurance Brokers subindustry, Aon's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.


Aon's Return-on-Tangible-Asset Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Aon's Return-on-Tangible-Asset distribution charts can be found below:

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


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Aon Return-on-Tangible-Asset Calculation

Aon's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2024 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=2654/( (25311+26988)/ 2 )
=2654/26149.5
=10.15 %

Aon's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=3860/( (26988+27742)/ 2 )
=3860/27365
=14.11 %

* 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-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2025) net income data.


Aon  (NYSE:AON) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Aon Return-on-Tangible-Asset Related Terms

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


Aon Business Description

Address
15 George's Quay, Dublin 2, Dublin, IRL, D02 VR98
Aon is a leading global provider of insurance and reinsurance brokerage and human resources solutions. Its operations are tilted toward its brokerage operations. Headquartered in London, Aon has about 50,000 employees and operations in over 120 countries.
Executives
Mindy F. Simon officer: Chief Operating Officer FOUR EMBARCADERO CENTER, SUITE 2100, SAN FRANCISCO CA 94111
Lisa Stevens officer: Chief People Officer 200 EAST RANDOLPH, CHICAGO IL 60601
Byron Spruell director 200 EAST RANDOLPH ST., CHICAGO IL 60601
Darren Zeidel officer: General Counsel 200 EAST RANDOLPH ST., CHICAGO IL 60640
Lester B Knight director C/O AON CORP, 200 EAST RANDOLPH STREET, CHICAGO IL 60601
Eric Andersen officer: CEO, Aon Benfield 200 EAST RANDOLPH ST., CHICAGO IL 60601
Christa Davies officer: EVP, Global Finance AON CORPORATE LAW DEPT, 200 EAST RANDOLPH ST, 8TH FL, CHICAGO IL 60601
Michael Neller officer: Principal Accounting Officer 200 EAST RANDOLPH ST., CHICAGO IL 60601
Sarah G Smith director C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
Adriana Karaboutis director C/O BIOGEN IDEC INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Jillian Slyfield officer: Chief Innovation Officer 200 E RANDOLPH ST., CHICAGO IL 60601
J Michael Losh director H.B. FULLER COMPANY, P.O. BOX 64683, ST. PAUL MN 55164-0683
James Platt officer: Chief Operating Officer THE LEADENHALL BUILDING, 122 LEADENHALL ST., LONDON X0 EC3V 4AN
John G Bruno officer: Executive Vice President, CIO
Carolyn Y Woo director 801 E. 86TH AVENUE, MERRILLVILLE IN 4641-