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. Azure Power Global's annualizedNet Income for the quarter that ended in Mar. 2024 was $-40.3 Mil. Azure Power Global's average total tangible assets for the quarter that ended in Mar. 2024 was $2,241.7 Mil. Therefore, Azure Power Global's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2024 was -1.80%.
The historical rank and industry rank for Azure Power Global's Return-on-Tangible-Asset or its related term are showing as below:
AZREF's Return-on-Tangible-Asset is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 1.285 * Ranked among companies with meaningful Return-on-Tangible-Asset only.
Azure Power Global (OTCPK:AZREF) 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.
Azure Power Global Return-on-Tangible-Asset Related Terms
Azure Power Global Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Azure Power Global'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.
AZREF vs SAFX, VGAS, STEM: Return-on-Tangible-Asset Comparison
For the Utilities - Renewable subindustry, Azure Power Global'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.
Azure Power Global Return-on-Tangible-Asset vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Azure Power Global's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Azure Power Global'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 one times the annual (Mar. 2024) net income data.
What does a Return-on-Tangible-Asset of -1.80% mean?
Azure Power Global (AZREF) has a Return-on-Tangible-Asset of -1.80% as of Mar. 2024. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Azure Power Global and its competitors.
Is Azure Power Global's Return-on-Tangible-Asset too high?
Azure Power Global's current Return-on-Tangible-Asset is -1.80%. Overall, Azure Power Global has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Azure Power Global's Return-on-Tangible-Asset compare to SAFX and VGAS?
Azure Power Global's Return-on-Tangible-Asset of -1.80% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Return-on-Tangible-Asset is 1.29. 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 Utilities - Independent Power Producers company?
The median Return-on-Tangible-Asset among Utilities - Independent Power Producers companies is 1.29, based on 448 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. 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 Azure Power Global and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Asset is 1.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azure Power Global's current Return-on-Tangible-Asset is -1.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azure Power Global stock overvalued right now?
Azure Power Global (AZREF) has a current Return-on-Tangible-Asset of -1.80%. The current Return-on-Tangible-Asset is -1.80%. Azure Power Global's overall GF Score™ is 12/100. 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 Azure Power Global (AZREF), the current Return-on-Tangible-Asset is -1.80% as of Mar. 2024. 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.
Azure Power Global Ltd is a utility-scale renewable energy project developer and operator. It is engaged in the development, construction, ownership, operation, maintenance, and management of renewable energy assets based on long-term contracts (Power Purchase Agreements or PPA) with Indian Government energy distribution companies, as well as other Indian non-governmental energy distribution companies and commercial customers.
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