What is Reliance Worldwide 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. Reliance Worldwide's annualized net income for the quarter that ended in Dec. 2024 was A$212 Mil. Reliance Worldwide's average shareholder tangible equity for the quarter that ended in Dec. 2024 was A$196 Mil. Therefore, Reliance Worldwide's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2024 was 108.11%.
The historical rank and industry rank for Reliance Worldwide's Return-on-Tangible-Equity or its related term are showing as below:
ASX:RWC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 47.5 Med: 93.19 Max: 163.3
Current: 94.16
During the past 8 years, Reliance Worldwide's highest Return-on-Tangible-Equity was 163.30%. The lowest was 47.50%. And the median was 93.19%.
ASX:RWC's Return-on-Tangible-Equity is ranked better than 91.7% of 1674
companies
in the Construction industry
Industry Median: 7.5
vs ASX:RWC: 94.16
Reliance Worldwide Return-on-Tangible-Equity Historical Data
The historical data trend for Reliance Worldwide'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.
Competitive Comparison of Reliance Worldwide's Return-on-Tangible-Equity
For the Building Products & Equipment subindustry, Reliance Worldwide'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.
Reliance Worldwide's Return-on-Tangible-Equity Distribution in the Construction Industry
For the Construction industry and Industrials sector, Reliance Worldwide's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Reliance Worldwide's Return-on-Tangible-Equity 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-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 two times the semi-annual (Dec. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
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.
Reliance Worldwide Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Reliance Worldwide's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Reliance manufactures behind-the-wall plumbing products, which include fittings, pipes, valves, fluid dispensers, pipe systems, and appliance connectors. Its main segment is the US, which comprises about three fourths of our midcycle EBITDA estimates. Other segments include EMEA and the Asia-Pacific, which contribute about 20% and less than 10%, respectively, of our midcycle EBITDA estimates. The firm is best known for its push-to-connect products, including the brands SharkBite in the US and John Guest in the United Kingdom. Reliance's primary target segment is the do-it-yourself market. Smaller sales segments include residential and commercial construction, and hot water system manufacturers, which use some Reliance products in manufacturing.
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