CNWT (Cistera Networks) Return-on-Tangible-Asset: 114.17% (As of Sep. 2010)

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What is Cistera Networks Return-on-Tangible-Asset?

Cistera Networks CNWT +44.44% Return-on-Tangible-Asset is 114.17% as of Sep. 2010.

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. Cistera Networks's annualized Net Income for the quarter that ended in Sep. 2010 was $0.57 Mil. Cistera Networks's average total tangible assets for the quarter that ended in Sep. 2010 was $0.50 Mil. Therefore, Cistera Networks's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2010 was 114.17%.

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

CNWT's Return-on-Tangible-Asset is not ranked *
in the Software industry.
Industry Median: 2.07
* Ranked among companies with meaningful Return-on-Tangible-Asset only.

Cistera Networks  (OTCPK:CNWT) 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.


Cistera Networks Return-on-Tangible-Asset Related Terms


Cistera Networks Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Cistera Networks'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.

Cistera Networks Return-on-Tangible-Asset Chart

Cistera Networks Annual Data
Trend Mar01 Mar02 Mar03 Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only -630.19 -154.27 -497.82 -554.92 -56.22

Cistera Networks Quarterly Data
Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10
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 75.29 27.44 -194.74 -19.21 114.17

CNWT vs INLX, VEII, FDBL: Return-on-Tangible-Asset Comparison

For the Software - Application subindustry, Cistera Networks'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.


Cistera Networks Return-on-Tangible-Asset vs Software Industry

For the Software industry and Technology sector, Cistera Networks's Return-on-Tangible-Asset distribution charts can be found below:

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



Cistera Networks Return-on-Tangible-Asset Calculation

Cistera Networks's annualized Return-on-Tangible-Asset for the fiscal year that ended in Mar. 2010 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Mar. 2010 )  (A: Mar. 2009 )(A: Mar. 2010 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Mar. 2010 )  (A: Mar. 2009 )(A: Mar. 2010 )
=-0.339/( (0.639+0.567)/ 2 )
=-0.339/0.603
=-56.22 %

Cistera Networks's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2010 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Sep. 2010 )  (Q: Jun. 2010 )(Q: Sep. 2010 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Sep. 2010 )  (Q: Jun. 2010 )(Q: Sep. 2010 )
=0.568/( (0.516+0.479)/ 2 )
=0.568/0.4975
=114.17 %

* 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. 2010) net income data.

What does a Return-on-Tangible-Asset of 114.17% mean?
Cistera Networks (CNWT) has a Return-on-Tangible-Asset of 114.17% as of Sep. 2010. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cistera Networks and its competitors.
Is Cistera Networks' Return-on-Tangible-Asset too high?
Cistera Networks' current Return-on-Tangible-Asset is 114.17%. The Software industry median Return-on-Tangible-Asset is 2.07. Cistera Networks' value of 114.17% is 5415.5% above this industry median.
How does Cistera Networks' Return-on-Tangible-Asset compare to INLX and VEII?
Cistera Networks' Return-on-Tangible-Asset of 114.17% can be compared against companies in the Software industry. The industry median Return-on-Tangible-Asset is 2.07. Cistera Networks' value of 114.17% is 5415.5% 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 a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.07, based on 2,892 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. Cistera Networks's current Return-on-Tangible-Asset of 114.17% is 5415.5% 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 Cistera Networks and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cistera Networks's current Return-on-Tangible-Asset is 114.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cistera Networks stock overvalued right now?
Cistera Networks (CNWT) has a current Return-on-Tangible-Asset of 114.17%. The current Return-on-Tangible-Asset is 114.17% and 5415.5% above the Software industry median of 2.07. 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 Cistera Networks (CNWT), the current Return-on-Tangible-Asset is 114.17% as of Sep. 2010. 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.

Cistera Networks Business Description

Address 5045 Lorimar Drive, Suite 180, Plano, TX, USA, 75093 5707
Cistera Networks Inc is a provider of cloud business communications solutions. It acts as a global provider of call recording, speech analytics and business intelligence solutions via on-site server or the cloud.