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Balfour Beatty (Balfour Beatty) Return-on-Tangible-Equity : 317.65% (As of Dec. 2023)


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What is Balfour Beatty 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. Balfour Beatty's annualized net income for the quarter that ended in Dec. 2023 was $339 Mil. Balfour Beatty's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $107 Mil. Therefore, Balfour Beatty's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 317.65%.

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

BAFYY' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.25   Med: 83.87   Max: 155.94
Current: 155.94

During the past 13 years, Balfour Beatty's highest Return-on-Tangible-Equity was 155.94%. The lowest was 13.25%. And the median was 83.87%.

BAFYY's Return-on-Tangible-Equity is ranked better than
92.63% of 1601 companies
in the Construction industry
Industry Median: 7.82 vs BAFYY: 155.94

Balfour Beatty Return-on-Tangible-Equity Historical Data

The historical data trend for Balfour Beatty'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.

Balfour Beatty Return-on-Tangible-Equity Chart

Balfour Beatty Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 84.52 13.42 59.41 117.67 147.53

Balfour Beatty Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Return-on-Tangible-Equity 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 74.03 72.08 155.55 82.20 317.65

Competitive Comparison of Balfour Beatty's Return-on-Tangible-Equity

For the Engineering & Construction subindustry, Balfour Beatty'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.


Balfour Beatty's Return-on-Tangible-Equity Distribution in the Construction Industry

For the Construction industry and Industrials sector, Balfour Beatty's Return-on-Tangible-Equity distribution charts can be found below:

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



Balfour Beatty Return-on-Tangible-Equity Calculation

Balfour Beatty's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=249.367/( (255.786+82.279 )/ 2 )
=249.367/169.0325
=147.53 %

Balfour Beatty's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=339.24/( (131.313+82.279)/ 2 )
=339.24/106.796
=317.65 %

* 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. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Balfour Beatty  (OTCPK:BAFYY) 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.


Balfour Beatty Return-on-Tangible-Equity Related Terms

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Balfour Beatty (Balfour Beatty) Business Description

Traded in Other Exchanges
Address
5 Churchill Place, Canary Wharf, London, GBR, E14 5HU
Balfour Beatty PLC finances, builds, and maintains infrastructure projects. It develops projects in energy, water, communications, transportation, and other industrial markets. In addition, the company manages construction businesses and provides maintenance and management services in power transmission, utilities infrastructure, road, and rail. Some projects are granted through concessions by government authorities. Balfour Beatty operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets when there are opportunities to manage the projects upon completion and create recurring revenue. The majority of sales are derived from the United Kingdom and the United States.

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