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. Applied Digital's annualizedNet Income for the quarter that ended in Feb. 2025 was $-142.2 Mil. Applied Digital's average total tangible assets for the quarter that ended in Feb. 2025 was $1,625.3 Mil. Therefore, Applied Digital's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2025 was -8.75%.
The historical rank and industry rank for Applied Digital's Return-on-Tangible-Asset or its related term are showing as below:
APLD'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -127.84 Med: -25.81 Max: -3.77
Current: -21.72
During the past 12 years, Applied Digital's highest Return-on-Tangible-Asset was -3.77%. The lowest was -127.84%. And the median was -25.81%.
APLD's Return-on-Tangible-Asset is ranked worse than 79.39% of 2838
companies
in the Software industry
Industry Median: 1.89
vs APLD: -21.72
Applied Digital Return-on-Tangible-Asset Historical Data
The historical data trend for Applied Digital'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.
Competitive Comparison of Applied Digital's Return-on-Tangible-Asset
For the Information Technology Services subindustry, Applied Digital'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.
Applied Digital's Return-on-Tangible-Asset Distribution in the Software Industry
For the Software industry and Technology sector, Applied Digital's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Applied Digital's Return-on-Tangible-Asset falls into.
* 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 (Feb. 2025) net income data.
Applied Digital (NAS:APLD) 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 companys 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 companys 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.
Applied Digital Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Applied Digital's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments; Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business which operates data centers to provide energized space to crypto mining customers.
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