Alcoa (AAPRB.PFD) Return-on-Tangible-Equity : 9.96% (As of Sep. 2016)

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What is Alcoa Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Alcoa's annualized net income for the quarter that ended in Sep. 2016 was $664.00 Mil. Alcoa's average shareholder tangible equity for the quarter that ended in Sep. 2016 was $6,665.00 Mil. Therefore, Alcoa's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2016 was 9.96%.

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

AAPRB.PFD' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -31.76 Med: 2.88 Max: 29.15
Current: -6.64

During the past 13 years, Alcoa's highest Return-on-Tangible-Equity was 29.15%. The lowest was -31.76%. And the median was 2.88%.

AAPRB.PFD's Return-on-Tangible-Equity is not ranked
in the Metals & Mining industry.
Industry Median: -17.28 vs AAPRB.PFD: -6.64

Alcoa Return-on-Tangible-Equity Historical Data

The historical data trend for Alcoa's Return-on-Tangible-Equity 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.

Alcoa Return-on-Tangible-Equity Chart

Alcoa Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Return-on-Tangible-Equity

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7.33

2.34

-31.73

4.08

-5.41

Alcoa Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Return-on-Tangible-Equity	Get a 7-Day Free Trial															2.47	-44.22	1.04	7.85	9.96

Competitive Comparison of Alcoa's Return-on-Tangible-Equity

For the Aluminum subindustry, Alcoa's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.

Alcoa's Return-on-Tangible-Equity Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Alcoa's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Alcoa's Return-on-Tangible-Equity falls into.

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Alcoa Return-on-Tangible-Equity Calculation

Alcoa's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2015 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(A: Dec. 2015 )		(A: Dec. 2014 )		(A: Dec. 2015 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets )	/ count )
		(A: Dec. 2015 )		(A: Dec. 2014 )		(A: Dec. 2015 )
	=	-322	/	( (6368	+	5532 )	/ 2 )
	=	-322	/	5950
	=	-5.41 %

Alcoa's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2016 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(Q: Sep. 2016 )		(Q: Jun. 2016 )		(Q: Sep. 2016 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets)	/ count )
		(Q: Sep. 2016 )		(Q: Jun. 2016 )		(Q: Sep. 2016 )
	=	664	/	( (6939	+	6391)	/ 2 )
	=	664	/	6665
	=	9.96 %

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2016) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

Alcoa (NYSE:AAPRB.PFD) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.

Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.

Alcoa Return-on-Tangible-Equity Related Terms

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

Alcoa Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Alcoa Inc (NYSE:AAPRB.PFD) » Definitions » Return-on-Tangible-Equity

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Address

Website

https://www.arconic.com

Arconic Inc, formerly known as Alcoa Inc was first incorporated as the Pittsburgh Reduction Company on October 1, 1888. The Company is engaged in manufacturing and engineering lightweight metals. Its products include aluminum, titanium, and nickel, used in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The Company is also engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its active participation in all aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. It has investments and operating activities in, among others, Australia, Brazil, China, Guinea, Iceland, Russia, and Saudi Arabia. The Company operates in segments including Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company's Global Rolled Products segment represents its midstream operations. The Engineered Products and Solutions segment represents a portion of the Company's downstream operations. Its downstream portfolio includes two segments Engineered Products and Solutions and Transportation and Construction Solutions. The Engineered Products and Solutions consist of Alcoa Titanium & Engineered Products; Alcoa Fastening Systems & Rings; Alcoa Forgings and Extrusions; and Alcoa Power and Propulsion. The Company's Transportation and Construction Solutions segment represents a portion of its downstream operations. The raw materials used includes bauxite, alloying materials, caustic soda, alumina, electricity, aluminum fluoride, fuel oil, calcined petroleum coke, lime (CaO), cathode blocks, natural gas, electricity, liquid pitch, natural gas, titanium alloys, titanium sponge and resin. The Company's trademark products include Howmet metal castings, Huck fasteners, Kawneer building panels and Dura-Bright wheels with easy-clean surface treatments.