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KAI (Kadant) Return-on-Tangible-Asset : 18.15% (As of Sep. 2024)


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What is Kadant 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. Kadant's annualized Net Income for the quarter that ended in Sep. 2024 was $126 Mil. Kadant's average total tangible assets for the quarter that ended in Sep. 2024 was $696 Mil. Therefore, Kadant's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2024 was 18.15%.

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

KAI' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 9.92   Med: 13.56   Max: 21.5
Current: 17.41

During the past 13 years, Kadant's highest Return-on-Tangible-Asset was 21.50%. The lowest was 9.92%. And the median was 13.56%.

KAI's Return-on-Tangible-Asset is ranked better than
95.95% of 3013 companies
in the Industrial Products industry
Industry Median: 3.52 vs KAI: 17.41

Kadant Return-on-Tangible-Asset Historical Data

The historical data trend for Kadant'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.

Kadant Return-on-Tangible-Asset Chart

Kadant Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.29 13.07 17.68 21.50 19.14

Kadant Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 20.34 17.77 15.19 18.35 18.15

Competitive Comparison of Kadant's Return-on-Tangible-Asset

For the Specialty Industrial Machinery subindustry, Kadant'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.


Kadant's Return-on-Tangible-Asset Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kadant's Return-on-Tangible-Asset distribution charts can be found below:

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



Kadant Return-on-Tangible-Asset Calculation

Kadant's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=116.069/( (588.781+624.295)/ 2 )
=116.069/606.538
=19.14 %

Kadant's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2024 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=126.344/( (688.302+704.024)/ 2 )
=126.344/696.163
=18.15 %

* 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. 2024) net income data.


Kadant  (NYSE:KAI) 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.


Kadant Return-on-Tangible-Asset Related Terms

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


Kadant Business Description

Traded in Other Exchanges
Address
One Technology Park Drive, Westford, MA, USA, 01886
Kadant Inc. supplies process and engineering equipment for papermaking, recycling, lumber manufacturing, and related industries. The company's three reportable segments are the Flow Control segment which consists of the fluid-handling and doctoring, cleaning, & filtration product lines; the Industrial Processing segment which consists of the wood processing and stock-preparation product lines; and Material handling systems, which provides conveyor-belt equipment for industries such as mining, food processing, and packaging. The company has a geographic presence with sizable revenue from the U.S., Europe, Asia, and Canada.
Executives
Dara F Mitchell officer: Senior VP, Corp. Development 1 TECHNOLOGY PARK DRIVE, WESTFORD MA 01886
Thomas C Leonard director KADANT INC., 1 TECHONOLOGY PARK DRIVE, WESTFORD MA 01886
Fredrik H Westerhout officer: Vice President KADANT INC., 1 TECHNOLOGY PARK DRIVE, WESTFORD MA 01886
Rebecca Martinez O'mara director KADANT INC., 1 TECHNOLOGY PARK DRIVE, WESTFORD MA 01886
Michael C. Colwell officer: Vice President KADANT INC., 1 TECHNOLOGY PARK DRIVE, WESTFORD MA 01886
Jeffrey L Powell officer: EXECUTIVE VICE PRESIDENT 1 WALNUT STREET, ACTON MA 01720
Michael J Mckenney officer: VICE PRESIDENT ONE ACTON PLACE STE.200, ACTON MA 01720
John M Albertine director 100 FEDERAL DRIVE, FREDERICKSBURG VA 22405
Peter J. Flynn officer: Vice President KADANT INC., 1 TECHNOLOGY PARK DRIVE, WESTFORD MA 01886
Stacy D. Krause officer: VP, General Counsel, Secretary KADANT INC., 1 TECHNOLOGY PARK DRIVE, WESTFORD MA 01886
Jonathan W Painter officer: EXECUTIVE VICE PRESIDENT ONE ACTO PLACE, SUITE 202, ACTON MA 01720
Thomas Andrew Blanchard officer: Vice President KADANT INC., 1 TECHNOLOGY PARK DRIVE, WESTFORD MA 01886
Erin L Russell director 245 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10167
William P Tully director 1 TECHNOLOGY PARK DRIVE, 1 TECHNOLOGY PARK DRIVE, WESTFORD MA 01886
Eric T Langevin officer: Vice President KADANT INC., ONE ACTON PLACE, SUITE 202, ACTON MA 01720