GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Loar Holdings Inc (NYSE:LOAR) » Definitions » Return-on-Tangible-Asset

LOAR (Loar Holdings) Return-on-Tangible-Asset : 17.95% (As of Mar. 2025)


View and export this data going back to 2024. Start your Free Trial

What is Loar Holdings 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. Loar Holdings's annualized Net Income for the quarter that ended in Mar. 2025 was $61.3 Mil. Loar Holdings's average total tangible assets for the quarter that ended in Mar. 2025 was $341.3 Mil. Therefore, Loar Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 was 17.95%.

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

LOAR' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -1.87   Med: -1.07   Max: 10.92
Current: 10.92

During the past 3 years, Loar Holdings's highest Return-on-Tangible-Asset was 10.92%. The lowest was -1.87%. And the median was -1.07%.

LOAR's Return-on-Tangible-Asset is ranked better than
85.05% of 321 companies
in the Aerospace & Defense industry
Industry Median: 3.24 vs LOAR: 10.92

Loar Holdings Return-on-Tangible-Asset Historical Data

The historical data trend for Loar Holdings'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.

Loar Holdings Return-on-Tangible-Asset Chart

Loar Holdings Annual Data
Trend Dec22 Dec23 Dec24
Return-on-Tangible-Asset
-1.07 -1.87 7.59

Loar Holdings Quarterly Data
Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.35 10.18 10.49 4.50 17.95

Competitive Comparison of Loar Holdings's Return-on-Tangible-Asset

For the Aerospace & Defense subindustry, Loar Holdings'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.


Loar Holdings's Return-on-Tangible-Asset Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Loar Holdings's Return-on-Tangible-Asset distribution charts can be found below:

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


;
;

Loar Holdings Return-on-Tangible-Asset Calculation

Loar Holdings's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2024 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=22.231/( (263.015+322.419)/ 2 )
=22.231/292.717
=7.59 %

Loar Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=61.264/( (322.419+360.15)/ 2 )
=61.264/341.2845
=17.95 %

* 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 (Mar. 2025) net income data.


Loar Holdings  (NYSE:LOAR) 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.


Loar Holdings Return-on-Tangible-Asset Related Terms

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


Loar Holdings Business Description

Traded in Other Exchanges
N/A
Address
20 New King Street, White Plains, New York, NY, USA, 10604
Loar Holdings Inc in the design, manufacture, and sale of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Its manufactured products includes auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions and motion and actuation devices, among others.