Taiba Kuwaiti Holding Co KSC (KUW:TAIBA) Return-on-Tangible-Asset: 19.61% (As of Sep. 2014)

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What is Taiba Kuwaiti Holding Co KSC Return-on-Tangible-Asset?

Taiba Kuwaiti Holding Co KSC KUW:TAIBA Return-on-Tangible-Asset is 19.61% as of Sep. 2014.

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. Taiba Kuwaiti Holding Co KSC's annualized Net Income for the quarter that ended in Sep. 2014 was KWD277.2 Mil. Taiba Kuwaiti Holding Co KSC's average total tangible assets for the quarter that ended in Sep. 2014 was KWD1,413.6 Mil. Therefore, Taiba Kuwaiti Holding Co KSC's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2014 was 19.61%.

The historical rank and industry rank for Taiba Kuwaiti Holding Co KSC's Return-on-Tangible-Asset or its related term are showing as below:

KUW:TAIBA's Return-on-Tangible-Asset is not ranked *
in the Credit Services industry.
Industry Median: 2.04
* Ranked among companies with meaningful Return-on-Tangible-Asset only.

Taiba Kuwaiti Holding Co KSC  (KUW:TAIBA) 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.


Taiba Kuwaiti Holding Co KSC Return-on-Tangible-Asset Related Terms


Taiba Kuwaiti Holding Co KSC Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Taiba Kuwaiti Holding Co KSC'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.

Taiba Kuwaiti Holding Co KSC Return-on-Tangible-Asset Chart

Taiba Kuwaiti Holding Co KSC Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11
Return-on-Tangible-Asset
27.13 -32.43 -29.70 -14.88 6.45

Taiba Kuwaiti Holding Co KSC Quarterly Data
Mar12 Jun12 Sep12 Jun13 Sep13 Jun14 Sep14
Return-on-Tangible-Asset Get a 7-Day Free Trial -23.79 1,191.02 0.00 23.62 19.61

Taiba Kuwaiti Holding Co KSC Return-on-Tangible-Asset Competitor Comparison

For the Credit Services subindustry, Taiba Kuwaiti Holding Co KSC'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.


Taiba Kuwaiti Holding Co KSC Return-on-Tangible-Asset vs Credit Services Industry

For the Credit Services industry and Financial Services sector, Taiba Kuwaiti Holding Co KSC's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Taiba Kuwaiti Holding Co KSC's Return-on-Tangible-Asset falls into.



Taiba Kuwaiti Holding Co KSC Return-on-Tangible-Asset Calculation

Taiba Kuwaiti Holding Co KSC's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2011 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2011 )  (A: Dec. 2010 )(A: Dec. 2011 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2011 )  (A: Dec. 2010 )(A: Dec. 2011 )
=1.409/( (21.535+22.153)/ 2 )
=1.409/21.844
=6.45 %

Taiba Kuwaiti Holding Co KSC's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2014 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Sep. 2014 )  (Q: Jun. 2014 )(Q: Sep. 2014 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Sep. 2014 )  (Q: Jun. 2014 )(Q: Sep. 2014 )
=277.164/( (1324.896+1502.216)/ 2 )
=277.164/1413.556
=19.61 %

* 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. 2014) net income data.

What does a Return-on-Tangible-Asset of 19.61% mean?
Taiba Kuwaiti Holding Co KSC (KUW:TAIBA) has a Return-on-Tangible-Asset of 19.61% as of Sep. 2014. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Taiba Kuwaiti Holding Co KSC and its competitors.
Is Taiba Kuwaiti Holding Co KSC's Return-on-Tangible-Asset too high?
Taiba Kuwaiti Holding Co KSC's current Return-on-Tangible-Asset is 19.61%. The Credit Services industry median Return-on-Tangible-Asset is 2.04. Taiba Kuwaiti Holding Co KSC's value of 19.61% is 861.3% above this industry median.
How does Taiba Kuwaiti Holding Co KSC's Return-on-Tangible-Asset compare to competitors?
Taiba Kuwaiti Holding Co KSC's Return-on-Tangible-Asset of 19.61% can be compared against companies in the Credit Services industry. The industry median Return-on-Tangible-Asset is 2.04. Taiba Kuwaiti Holding Co KSC's value of 19.61% is 861.3% above this benchmark. 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 Credit Services company?
The median Return-on-Tangible-Asset among Credit Services companies is 2.04, based on 549 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. Taiba Kuwaiti Holding Co KSC's current Return-on-Tangible-Asset of 19.61% is 861.3% above the industry median. 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 Taiba Kuwaiti Holding Co KSC and its competitors. For the Credit Services 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. Taiba Kuwaiti Holding Co KSC's current Return-on-Tangible-Asset is 19.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiba Kuwaiti Holding Co KSC stock overvalued right now?
Taiba Kuwaiti Holding Co KSC (KUW:TAIBA) has a current Return-on-Tangible-Asset of 19.61%. The current Return-on-Tangible-Asset is 19.61% and 861.3% above the Credit Services industry median of 2.04. 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 Taiba Kuwaiti Holding Co KSC (KUW:TAIBA), the current Return-on-Tangible-Asset is 19.61% as of Sep. 2014. 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.

Taiba Kuwaiti Holding Co KSC Business Description

Comparable Companies KUW:ARZANKUW:FACIL
Taiba Kuwaiti Holding Co operates as an investment holding company. It holds shares of other companies, extends loans to investee companies, provides guarantees for third parties and acquires industrial trademarks, among others.