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. Lonrho's annualizedNet Income for the quarter that ended in Dec. 2012 was £-54.8 Mil. Lonrho's average total tangible assets for the quarter that ended in Dec. 2012 was £304.6 Mil. Therefore, Lonrho's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2012 was -17.99%.
The historical rank and industry rank for Lonrho's Return-on-Tangible-Asset or its related term are showing as below:
LSE:LONR'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -39.67 Med: -0.16 Max: 12.65
Current: -8.96
During the past 13 years, Lonrho's highest Return-on-Tangible-Asset was 12.65%. The lowest was -39.67%. And the median was -0.16%.
LSE:LONR's Return-on-Tangible-Asset is not ranked
in the Conglomerates industry.
Industry Median: 2.64
vs LSE:LONR: -8.96
Lonrho Return-on-Tangible-Asset Historical Data
The historical data trend for Lonrho'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.
Competitive Comparison of Lonrho's Return-on-Tangible-Asset
For the Conglomerates subindustry, Lonrho'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.
Lonrho's Return-on-Tangible-Asset Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Lonrho's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Lonrho's Return-on-Tangible-Asset falls into.
Lonrho Return-on-Tangible-Asset Calculation
Lonrho's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2012 is calculated as:
* 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 two times the semi-annual (Dec. 2012) net income data.
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.
Lonrho Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Lonrho's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Lonrho PLC is engaged in providing the infrastructure and services required for the growing oil, mineral and agricultural sectors in Africa. The Company has a diverse portfolio of investments across Sub-Saharan Africa in four core operating sectors: Agribusiness, Infrastructure, Hotels and Support Services. Agribusiness vertically integrates the production, sourcing, logistics, processing and distribution of agricultural products from Sub-Saharan Africa to the consumer. The division supplies to its retailers in Sub-Saharan Africa, Europe, the USA, Middle East, Scandinavia and the Far East. The division also distributes agricultural and heavy machinery. Infrastructure division develops and manages oil logistics terminals. Luba Freeport, the oil service terminal in the Gulf of Guinea, has attracted oil service companies to be long term tenants at the port to service offshore exploration and production rigs. The Company's Hotel division includes hotels centred on the commercial, conference and business related markets across the Continent. It owns or manages hotels in Lubumbashi and Kinshasa in the Democratic Republic of the Congo, Maputo in Mozambique, Gaborone in Botswana and Mutare in Zimbabwe. IT business is a full systems integrator and manager that designs, builds, develops and integrates IT solutions for large corporate clients, banks and governments and then undertakes management contracts to run and manage installations. The IT division is a distributor for Cisco, Microsoft, Dell and Hewlett Packard systems and equipment.
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