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GFI Group (FRA:GDH1) Return-on-Tangible-Asset : 4.55% (As of Sep. 2015)


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

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. GFI Group's annualized Net Income for the quarter that ended in Sep. 2015 was €39.9 Mil. GFI Group's average total tangible assets for the quarter that ended in Sep. 2015 was €876.0 Mil. Therefore, GFI Group's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2015 was 4.55%.

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

FRA:GDH1' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -10.51   Med: 2.62   Max: 12.97
Current: -1.39

During the past 13 years, GFI Group's highest Return-on-Tangible-Asset was 12.97%. The lowest was -10.51%. And the median was 2.62%.

FRA:GDH1's Return-on-Tangible-Asset is not ranked
in the Capital Markets industry.
Industry Median: 1.505 vs FRA:GDH1: -1.39

GFI Group Return-on-Tangible-Asset Historical Data

The historical data trend for GFI 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.

* Premium members only.

GFI Group Return-on-Tangible-Asset Chart

GFI Group Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.25 -0.35 -1.15 -2.27 -10.97

GFI Group Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 -2.46 -2.15 -5.84 -0.52 4.55

Competitive Comparison of GFI Group's Return-on-Tangible-Asset

For the Capital Markets subindustry, GFI 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.


GFI Group's Return-on-Tangible-Asset Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, GFI Group's Return-on-Tangible-Asset distribution charts can be found below:

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



GFI Group Return-on-Tangible-Asset Calculation

GFI Group's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2014 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2014 )  (A: Dec. 2013 )(A: Dec. 2014 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2014 )  (A: Dec. 2013 )(A: Dec. 2014 )
=-87.623/( (627.755+970.357)/ 2 )
=-87.623/799.056
=-10.97 %

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

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Sep. 2015 )  (Q: Jun. 2015 )(Q: Sep. 2015 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Sep. 2015 )  (Q: Jun. 2015 )(Q: Sep. 2015 )
=39.876/( (881.855+870.181)/ 2 )
=39.876/876.018
=4.55 %

* 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. 2015) net income data.


GFI Group  (FRA:GDH1) 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.


GFI Group Return-on-Tangible-Asset Related Terms

Thank you for viewing the detailed overview of GFI Group's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.


GFI Group (FRA:GDH1) Business Description

Traded in Other Exchanges
N/A
Address
GFI Group Inc was incorporated under the laws of the State of Delaware in 2001. The Company provides wholesale brokerage services, clearing services and electronic execution and trading support products for financial markets. It provide brokerage and trade execution services, clearing services, market data and trading platform and other software products to institutional customers in markets for a range of fixed income, financial, equity and commodity instruments. The Company provides execution services for its institutional wholesale customers by either matching their trading needs with counterparties having reciprocal interests or directing their orders to an exchange or other trading venue. The Company offers its customers a hybrid brokerage approach, combining a range of telephonic and electronic trade execution services, depending on the nature of the products and the specific needs of its customers. The Company operates in five business segments: Americas Brokerage; Europe, the Middle East and Africa Brokerage; Asia Brokerage, Clearing and Backed Trading and All Other. Its brokerage operations provide brokerage services in four product categories: fixed income, financial, equity and commodity. It's Clearing and Backed Trading segment encompasses its clearing, risk management, settlement and other back-office services, as well as the capital the Company provide to start-up trading groups, small hedge funds, market-makers and individual traders. The All Other segment captures revenues and costs that are not directly assignable to the brokerage or clearing and backed trading operating business segments, consisting of Company's corporate business activities and operations and commercial revenues from sales and licensing of trading systems software, analytic and market data. The Company offers products and services including Fixed Income Products, Financial Products, Equity Products, Commodity Products, Clearing and Settlement Services, and Software, Analytic and Market Data. The Company's competitors include ICAP Plc, Tullett Prebon Plc, CME, the Chicago Board Options Exchange, and Eurex and Euronext. The Company's businesses are subject to extensive regulation by government and self-regulatory organizations both in the United States and abroad.

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