DCEL (Digicel Group) Return-on-Tangible-Asset: -5.88% (As of Mar. 2015)

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What is Digicel Group Return-on-Tangible-Asset?

Digicel Group DCEL Return-on-Tangible-Asset is -5.88% as of Mar. 2015.

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. Digicel Group's annualized Net Income for the quarter that ended in Mar. 2015 was $-168.30 Mil. Digicel Group's average total tangible assets for the quarter that ended in Mar. 2015 was $2,864.27 Mil. Therefore, Digicel Group's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2015 was -5.88%.

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

DCEL's Return-on-Tangible-Asset is not ranked *
in the Telecommunication Services industry.
Industry Median: 3.47
* Ranked among companies with meaningful Return-on-Tangible-Asset only.

Digicel Group  (NYSE:DCEL) 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.


Digicel Group Return-on-Tangible-Asset Related Terms


Digicel Group Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Digicel Group'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.

Digicel Group Return-on-Tangible-Asset Chart

Digicel Group Annual Data
Trend Mar13 Mar14 Mar15
Return-on-Tangible-Asset
0.00 1.11 -5.88

Digicel Group Semi-Annual Data
Mar13 Mar14 Mar15
Return-on-Tangible-Asset 0.00 1.11 -5.88

DCEL vs DIRV, FULO, TOWTF: Return-on-Tangible-Asset Comparison

For the Telecom Services subindustry, Digicel Group'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.


Digicel Group Return-on-Tangible-Asset vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Digicel Group's Return-on-Tangible-Asset distribution charts can be found below:

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



Digicel Group Return-on-Tangible-Asset Calculation

Digicel Group's annualized Return-on-Tangible-Asset for the fiscal year that ended in Mar. 2015 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Mar. 2015 )  (A: Mar. 2014 )(A: Mar. 2015 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Mar. 2015 )  (A: Mar. 2014 )(A: Mar. 2015 )
=-168.304/( (2718.486+3010.049)/ 2 )
=-168.304/2864.2675
=-5.88 %

Digicel Group's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2015 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2015 )  (Q: Mar. 2014 )(Q: Mar. 2015 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2015 )  (Q: Mar. 2014 )(Q: Mar. 2015 )
=-168.304/( (2718.486+3010.049)/ 2 )
=-168.304/2864.2675
=-5.88 %

* 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. 2015) net income data.

What does a Return-on-Tangible-Asset of -5.88% mean?
Digicel Group (DCEL) has a Return-on-Tangible-Asset of -5.88% as of Mar. 2015. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Digicel Group and its competitors.
Is Digicel Group's Return-on-Tangible-Asset too high?
Digicel Group's current Return-on-Tangible-Asset is -5.88%.
How does Digicel Group's Return-on-Tangible-Asset compare to DIRV and FULO?
Digicel Group's Return-on-Tangible-Asset of -5.88% can be compared against companies in the Telecommunication Services industry. The industry median Return-on-Tangible-Asset is 3.47. 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 Telecommunication Services company?
The median Return-on-Tangible-Asset among Telecommunication Services companies is 3.47, based on 364 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 Digicel Group and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Asset is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digicel Group's current Return-on-Tangible-Asset is -5.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digicel Group stock overvalued right now?
Digicel Group (DCEL) has a current Return-on-Tangible-Asset of -5.88%. The current Return-on-Tangible-Asset is -5.88%. 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 Digicel Group (DCEL), the current Return-on-Tangible-Asset is -5.88% as of Mar. 2015. 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.

Digicel Group Business Description

Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.