Compu Clearing Outsourcing (JSE:CCL) Return-on-Tangible-Asset : 22.84% (As of Dec. 2014)

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What is Compu Clearing Outsourcing 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. Compu Clearing Outsourcing's annualized Net Income for the quarter that ended in Dec. 2014 was R12.72 Mil. Compu Clearing Outsourcing's average total tangible assets for the quarter that ended in Dec. 2014 was R55.68 Mil. Therefore, Compu Clearing Outsourcing's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2014 was 22.84%.

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

JSE:CCL's Return-on-Tangible-Asset is not ranked ^*
in the Software industry.
Industry Median: 1.37
* Ranked among companies with meaningful Return-on-Tangible-Asset only.

Compu Clearing Outsourcing Return-on-Tangible-Asset Historical Data

The historical data trend for Compu Clearing Outsourcing'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.

Compu Clearing Outsourcing Return-on-Tangible-Asset Chart

Compu Clearing Outsourcing Annual Data

Trend

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Return-on-Tangible-Asset

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15.11

15.86

19.67

19.11

20.83

Compu Clearing Outsourcing Semi-Annual Data
	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14
Return-on-Tangible-Asset	Get a 7-Day Free Trial								21.34	17.93	22.84	22.30	22.84

Competitive Comparison of Compu Clearing Outsourcing's Return-on-Tangible-Asset

For the Information Technology Services subindustry, Compu Clearing Outsourcing'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.

Compu Clearing Outsourcing's Return-on-Tangible-Asset Distribution in the Software Industry

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

* The bar in red indicates where Compu Clearing Outsourcing's Return-on-Tangible-Asset falls into.

Compu Clearing Outsourcing Return-on-Tangible-Asset Calculation

Compu Clearing Outsourcing's annualized Return-on-Tangible-Asset for the fiscal year that ended in Jun. 2014 is calculated as:

Return-on-Tangible-Asset	=	Net Income	/	( (Total Tangible Assets	+	Total Tangible Assets)	/ count )
		(A: Jun. 2014 )		(A: Jun. 2013 )		(A: Jun. 2014 )
	=	Net Income	/	( (Total Assets - Intangible Assets	+	Total Assets - Intangible Assets)	/ count )
		(A: Jun. 2014 )		(A: Jun. 2013 )		(A: Jun. 2014 )
	=	12.6	/	( (59.835	+	61.142)	/ 2 )
	=	12.6	/	60.4885
	=	20.83 %

Compu Clearing Outsourcing's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2014 is calculated as:

Return-on-Tangible-Asset	=	Net Income	/	( (Total Tangible Assets	+	Total Tangible Assets)	/ count )
		(Q: Dec. 2014 )		(Q: Jun. 2014 )		(Q: Dec. 2014 )
	=	Net Income	/	( (Total Assets - Intangible Assets	+	Total Assets - Intangible Assets)	/ count )
		(Q: Dec. 2014 )		(Q: Jun. 2014 )		(Q: Dec. 2014 )
	=	12.72	/	( (61.142	+	50.226)	/ 2 )
	=	12.72	/	55.684
	=	22.84 %

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 two times the semi-annual (Dec. 2014) net income data.

Compu Clearing Outsourcing (JSE:CCL) 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.

Compu Clearing Outsourcing Return-on-Tangible-Asset Related Terms

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