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. Arista Power's annualizedNet Income for the quarter that ended in Sep. 2014 was $2.10 Mil. Arista Power's average total tangible assets for the quarter that ended in Sep. 2014 was $2.26 Mil. Therefore, Arista Power's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2014 was 92.80%.
The historical rank and industry rank for Arista Power's Return-on-Tangible-Asset or its related term are showing as below:
ASPW's Return-on-Tangible-Asset is not ranked *
in the Industrial Products industry.
Industry Median: 3.245 * Ranked among companies with meaningful Return-on-Tangible-Asset only.
Arista Power (OTCPK:ASPW) 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.
Arista Power Return-on-Tangible-Asset Related Terms
Arista Power Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Arista Power'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.
For the Specialty Industrial Machinery subindustry, Arista Power'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.
Arista Power Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Arista Power's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Arista Power'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 (Sep. 2014) net income data.
What does a Return-on-Tangible-Asset of 92.80% mean?
Arista Power (ASPW) has a Return-on-Tangible-Asset of 92.80% as of Sep. 2014. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Arista Power and its competitors.
Is Arista Power's Return-on-Tangible-Asset too high?
Arista Power's current Return-on-Tangible-Asset is 92.80%. The Industrial Products industry median Return-on-Tangible-Asset is 3.25. Arista Power's value of 92.80% is 2759.8% above this industry median.
How does Arista Power's Return-on-Tangible-Asset compare to COTE?
Arista Power's Return-on-Tangible-Asset of 92.80% can be compared against companies in the Industrial Products industry. The industry median Return-on-Tangible-Asset is 3.25. Arista Power's value of 92.80% is 2759.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.25, based on 3,068 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arista Power's current Return-on-Tangible-Asset of 92.80% is 2759.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Arista Power and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arista Power's current Return-on-Tangible-Asset is 92.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arista Power stock overvalued right now?
Arista Power (ASPW) has a current Return-on-Tangible-Asset of 92.80%. The current Return-on-Tangible-Asset is 92.80% and 2759.8% above the Industrial Products industry median of 3.25. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Arista Power (ASPW), the current Return-on-Tangible-Asset is 92.80% as of Sep. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Arista Power Inc provides renewable power solutions. It is a developer, supplier and integrator of custom-designed power management systems, and a supplier, designer, and installer of solar energy systems. Arista provides flexible, scalable solutions in power management systems, renewable energy storage systems, WindTamer wind turbines, and a supplier and designer of solar energy systems. The company also manufactures a Mobile Renewable Power Station that generates wind and solar energy to an integrated onboard storage unit for military and other applications.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASPW has been successfully added to your 