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. Sole Elite Group's annualizedNet Income for the quarter that ended in Dec. 2014 was $28.79 Mil. Sole Elite Group's average total tangible assets for the quarter that ended in Dec. 2014 was $38.81 Mil. Therefore, Sole Elite Group's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2014 was 74.19%.
The historical rank and industry rank for Sole Elite Group's Return-on-Tangible-Asset or its related term are showing as below:
SOLE's Return-on-Tangible-Asset is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 1.99 * Ranked among companies with meaningful Return-on-Tangible-Asset only.
Sole Elite Group (NAS:SOLE) 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 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.
Sole Elite Group Return-on-Tangible-Asset Related Terms
Sole Elite Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Sole Elite 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.
Sole Elite Group Return-on-Tangible-Asset Chart
Sole Elite Group Annual Data
Trend
Dec12
Dec13
Dec14
Return-on-Tangible-Asset
48.75
61.64
74.19
Sole Elite Group Semi-Annual Data
Dec12
Dec13
Dec14
Return-on-Tangible-Asset
48.75
61.64
74.19
SOLE vs FORD, JCLY, TLF: Return-on-Tangible-Asset Comparison
For the Footwear & Accessories subindustry, Sole Elite 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.
Sole Elite Group Return-on-Tangible-Asset vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sole Elite Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Sole Elite Group'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. 2014) net income data.
What does a Return-on-Tangible-Asset of 74.19% mean?
Sole Elite Group (SOLE) has a Return-on-Tangible-Asset of 74.19% as of Dec. 2014. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Sole Elite Group and its competitors.
Is Sole Elite Group's Return-on-Tangible-Asset too high?
Sole Elite Group's current Return-on-Tangible-Asset is 74.19%. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Asset is 1.99. Sole Elite Group's value of 74.19% is 3628.1% above this industry median.
How does Sole Elite Group's Return-on-Tangible-Asset compare to FORD and JCLY?
Sole Elite Group's Return-on-Tangible-Asset of 74.19% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Return-on-Tangible-Asset is 1.99. Sole Elite Group's value of 74.19% is 3628.1% 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 Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Asset among Manufacturing - Apparel & Accessories companies is 1.99, based on 1,063 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. Sole Elite Group's current Return-on-Tangible-Asset of 74.19% is 3628.1% 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 Sole Elite Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Asset is 1.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sole Elite Group's current Return-on-Tangible-Asset is 74.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sole Elite Group stock overvalued right now?
Sole Elite Group (SOLE) has a current Return-on-Tangible-Asset of 74.19%. The current Return-on-Tangible-Asset is 74.19% and 3628.1% above the Manufacturing - Apparel & Accessories industry median of 1.99. 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 Sole Elite Group (SOLE), the current Return-on-Tangible-Asset is 74.19% as of Dec. 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.
Sole Elite Group Ltd was formed on December 10, 2014. The Company, through its subsidiaries, is engaged in the business of designing, producing and selling shoe soles. It has four product lines: RB soles, MD soles, single color IP sole and dual color IP sole products. Its manufacturing facilities in China are located in Jinjiang, Fujian Province, which has a high concentration of footwear industry participants. Sports shoe soles are made of various materials, such as EVA, RB, PU, TPE, and TPU. The core materials of shoe soles are EVA and RB. The principal raw materials used in the production of its products are EVA, rubber, TPU, color dyes and other chemical additives. Its raw materials are sourced suppliers in the PRC located in Quanzhou, Fujian Province, which is close to its production facilities. It sells products to sportswear manufacturers that are based in China, including a number of companies in the athletic wear market, including Li-Ning, 361º, ERKE and Anta. It also sells products to OEM footwear companies for international athletic brands, such as Taiwan Ching Luh, which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour in Asia. Customers use its products as components in the athletic footwear that it sells to end consumers, athletic wear companies and shoe distributors. Its customer includes Fujian Ching Luh Shoes Co., Ltd., which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour. Its direct competition comes from various shoe sole production companies in China, such as Multi Sports Holding Ltd., Victory New Materials Limited Company, Fenghua SoleTech AG, Tai Ya Shoes Co., Ltd., Mao Tai (Fujian) Soles Co., Ltd. and Xing Quan International Sports Holdings Limited. It currently hold four PRC patents. The Company is subject to all China's national and local laws and regulations, including those related to environmental protection, foreign currency, property ownership and taxation.
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