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Principal Financial Group (LTS:0KO5) Return-on-Tangible-Asset : -0.28% (As of Sep. 2024)


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What is Principal Financial Group 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. Principal Financial Group's annualized Net Income for the quarter that ended in Sep. 2024 was $-880 Mil. Principal Financial Group's average total tangible assets for the quarter that ended in Sep. 2024 was $312,812 Mil. Therefore, Principal Financial Group's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2024 was -0.28%.

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

LTS:0KO5' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -0.07   Med: 0.56   Max: 1.61
Current: -0.07

During the past 13 years, Principal Financial Group's highest Return-on-Tangible-Asset was 1.61%. The lowest was -0.07%. And the median was 0.56%.

LTS:0KO5's Return-on-Tangible-Asset is ranked worse than
74.78% of 1693 companies
in the Asset Management industry
Industry Median: 4.32 vs LTS:0KO5: -0.07

Principal Financial Group Return-on-Tangible-Asset Historical Data

The historical data trend for Principal Financial Group'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.

Principal Financial Group Return-on-Tangible-Asset Chart

Principal Financial Group 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 0.54 0.49 0.53 1.61 0.21

Principal Financial Group 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 1.72 -1.19 0.70 0.46 -0.28

Competitive Comparison of Principal Financial Group's Return-on-Tangible-Asset

For the Asset Management subindustry, Principal Financial Group'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.


Principal Financial Group's Return-on-Tangible-Asset Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Principal Financial Group's Return-on-Tangible-Asset distribution charts can be found below:

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



Principal Financial Group Return-on-Tangible-Asset Calculation

Principal Financial Group'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 )
=623.2/( (287735.5+301921.7)/ 2 )
=623.2/294828.6
=0.21 %

Principal Financial Group'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 )
=-880/( (305788.5+319836.2)/ 2 )
=-880/312812.35
=-0.28 %

* 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.


Principal Financial Group  (LTS:0KO5) 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.


Principal Financial Group Return-on-Tangible-Asset Related Terms

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Principal Financial Group Business Description

Traded in Other Exchanges
Address
711 High Street, Des Moines, IA, USA, 50392
Principal Financial Group Inc is a leader in Global investment management offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through diverse family of financial services companies. It operates in four business segments that are Retirement and Income Solutions, Principal Global Investors, Principal International, and United States Insurance Solutions. The company receives maximum revenue in the form of premiums.

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