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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. Reconova Technologies Co's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$-74.3 Mil. Reconova Technologies Co's average total tangible assets for the quarter that ended in Dec. 2025 was HK$597.8 Mil. Therefore, Reconova Technologies Co's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was -12.42%.
The historical rank and industry rank for Reconova Technologies Co's Return-on-Tangible-Asset or its related term are showing as below:
HKSE:07656'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -12.42 Med: -11.58 Max: 2.87
Current: -12.42
During the past 3 years, Reconova Technologies Co's highest Return-on-Tangible-Asset was 2.87%. The lowest was -12.42%. And the median was -11.58%.
HKSE:07656's Return-on-Tangible-Asset is ranked worse than 74.32% of 2889
companies
in the Software industry
Industry Median: 2.04
vs HKSE:07656: -12.42
Reconova Technologies Co (HKSE:07656) 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.
Reconova Technologies Co Return-on-Tangible-Asset Related Terms
Reconova Technologies Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Reconova Technologies Co'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.
Reconova Technologies Co Return-on-Tangible-Asset Chart
Reconova Technologies Co Annual Data
Trend
Dec23
Dec24
Dec25
Return-on-Tangible-Asset
-11.58
2.87
-12.42
Reconova Technologies Co Semi-Annual Data
Dec23
Dec24
Dec25
Return-on-Tangible-Asset
-11.58
2.87
-12.42
HKSE:07656 vs IBM, ACN, CTSH: Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, Reconova Technologies Co'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.
Reconova Technologies Co Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Reconova Technologies Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Reconova Technologies Co'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 (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of -12.42% mean?
Reconova Technologies Co (HKSE:07656) has a Return-on-Tangible-Asset of -12.42% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Reconova Technologies Co and its competitors. According to the industry distribution chart, Reconova Technologies Co ranks #2147 out of 2889 companies in the Software industry, placing it in the top 74.3%.
Is Reconova Technologies Co's Return-on-Tangible-Asset too high?
Reconova Technologies Co's current Return-on-Tangible-Asset is -12.42%. Based on the distribution chart, Reconova Technologies Co ranks #2147 out of 2889 companies in the Software industry, which is below the industry midpoint. Overall, Reconova Technologies Co has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Reconova Technologies Co's Return-on-Tangible-Asset compare to IBM and ACN?
According to the Software industry distribution chart, Reconova Technologies Co ranks #2147 out of 2889 companies for Return-on-Tangible-Asset. This places Reconova Technologies Co in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.04. 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 2.04, based on 2,889 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 Reconova Technologies Co and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reconova Technologies Co's current Return-on-Tangible-Asset is -12.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reconova Technologies Co stock overvalued right now?
Reconova Technologies Co (HKSE:07656) has a current Return-on-Tangible-Asset of -12.42%. The current Return-on-Tangible-Asset is -12.42%. Reconova Technologies Co's overall GF Score™ is 13/100 with 4 warning signs to review. 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 Reconova Technologies Co (HKSE:07656), the current Return-on-Tangible-Asset is -12.42% as of Dec. 2025. 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.
Reconova Technologies Co Ltd is an AI company that provides visual AI technologies and products for enterprise clients. It is engaged in the research and development, design and sale of Visual Intelligents, commercial robots and intelligent passage devices. The company's product offerings include visual perception, visual cognition, and visual reasoning solutions applied across sectors including civil aviation, commercial spaces, and driving safety. The majority of the company's revenue is derived from the sale of Intelligent Civil Aviation, which covers the entire passenger journey including check-in, security screening, boarding, and customer service. Geographically, the maximum revenue is generated from the Chinese Mainland.
13GF Score
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