Otofarma SpAMIL:OTO 16 Return-on-Tangible-Asset is 8.84% as of Dec. 2024, which is 11% above its 10-year median of 7.93. GuruFocus rates MIL:OTO with a GF Score™ of 16/100. The stock has 1 warning sign investors should review. Among 854 Medical Devices & Instruments companies, Otofarma SpA ranks better than 79.39% on this metric.
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. Otofarma SpA's annualizedNet Income for the quarter that ended in Dec. 2024 was €0.70 Mil. Otofarma SpA's average total tangible assets for the quarter that ended in Dec. 2024 was €7.90 Mil. Therefore, Otofarma SpA's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2024 was 8.84%.
The historical rank and industry rank for Otofarma SpA's Return-on-Tangible-Asset or its related term are showing as below:
MIL:OTO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.02 Med: 7.93 Max: 8.84
Current: 8.84
During the past 2 years, Otofarma SpA's highest Return-on-Tangible-Asset was 8.84%. The lowest was 7.02%. And the median was 7.93%.
MIL:OTO's Return-on-Tangible-Asset is ranked better than 79.39% of 854
companies
in the Medical Devices & Instruments industry
Industry Median: 0.665
vs MIL:OTO: 8.84
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.
Otofarma SpA Return-on-Tangible-Asset Related Terms
Otofarma SpA Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Otofarma SpA'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.
Otofarma SpA Return-on-Tangible-Asset Chart
Otofarma SpA Annual Data
Trend
Dec23
Dec24
Return-on-Tangible-Asset
7.02
8.84
Otofarma SpA Semi-Annual Data
Dec23
Dec24
Return-on-Tangible-Asset
7.02
8.84
MIL:OTO vs ABT, SYK, MDT: Return-on-Tangible-Asset Comparison
For the Medical Devices subindustry, Otofarma SpA'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.
Otofarma SpA Return-on-Tangible-Asset vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Otofarma SpA's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Otofarma SpA's Return-on-Tangible-Asset falls into.
* 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 one times the annual (Dec. 2024) net income data.
What does a Return-on-Tangible-Asset of 8.84% mean?
Otofarma SpA (MIL:OTO) has a Return-on-Tangible-Asset of 8.84% as of Dec. 2024. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Otofarma SpA and its competitors. This is 11% above median its historical median of 7.93. Over the past decade, Otofarma SpA's Return-on-Tangible-Asset has ranged from 7.02 to 8.84. According to the industry distribution chart, Otofarma SpA ranks #176 out of 854 companies in the Medical Devices & Instruments industry, placing it in the top 20.6%.
Is Otofarma SpA's Return-on-Tangible-Asset too high?
Otofarma SpA's current Return-on-Tangible-Asset of 8.84% is 11% above median its 10-year median of 7.93. Over the past 10 years, this metric has ranged from a low of 7.02 to a high of 8.84. The Medical Devices & Instruments industry median Return-on-Tangible-Asset is 0.67. Otofarma SpA's value of 8.84% is 1229.3% above this industry median. Based on the distribution chart, Otofarma SpA ranks #176 out of 854 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Otofarma SpA has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Otofarma SpA's Return-on-Tangible-Asset compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Otofarma SpA ranks #176 out of 854 companies for Return-on-Tangible-Asset. This places Otofarma SpA in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 0.67. Otofarma SpA's value of 8.84% is 1229.3% above this benchmark. Historically, Otofarma SpA's own Return-on-Tangible-Asset has ranged from 7.02 to 8.84 over the past decade. While the company's 10-year median is 7.93 vs. the industry median of 0.67, Otofarma SpA has consistently been above the industry average. 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 Medical Devices & Instruments company?
The median Return-on-Tangible-Asset among Medical Devices & Instruments companies is 0.67, based on 854 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. Otofarma SpA's current Return-on-Tangible-Asset of 8.84% is 1229.3% 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 Otofarma SpA and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Asset is 0.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otofarma SpA's current Return-on-Tangible-Asset is 8.84%, which is 11% above median its own 10-year median of 7.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otofarma SpA stock overvalued right now?
Otofarma SpA (MIL:OTO) has a current Return-on-Tangible-Asset of 8.84%. The current Return-on-Tangible-Asset is 8.84%, which is 11% above median its 10-year median of 7.93 and 1229.3% above the Medical Devices & Instruments industry median of 0.67. Otofarma SpA's overall GF Score™ is 16/100 with 1 warning sign to review. 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 Otofarma SpA (MIL:OTO), the current Return-on-Tangible-Asset is 8.84% as of Dec. 2024. 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.
Otofarma SpA is engaged in the construction and production of hearing aids, is constantly growing in the audiological field to provide adequate responses to every type of hearing aid need to its customers who require the possible personalized application of custom-made hearing aids. It provides otoacoustic medical devices and TELEMEDICINE services exclusively in affiliated pharmacies, possessing a portfolio of Instrumental IT patents.
16GF Score
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