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Ferguson Enterprises (CHIX:FERGL) Return-on-Tangible-Equity : 45.36% (As of Jan. 2025)


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What is Ferguson Enterprises 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. Ferguson Enterprises's annualized net income for the quarter that ended in Jan. 2025 was £893 Mil. Ferguson Enterprises's average shareholder tangible equity for the quarter that ended in Jan. 2025 was £1,969 Mil. Therefore, Ferguson Enterprises's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2025 was 45.36%.

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

CHIX:FERGl' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.46   Med: 47.18   Max: 98.18
Current: 66.47

During the past 13 years, Ferguson Enterprises's highest Return-on-Tangible-Equity was 98.18%. The lowest was 12.46%. And the median was 47.18%.

CHIX:FERGl's Return-on-Tangible-Equity is ranked better than
88.96% of 154 companies
in the Industrial Distribution industry
Industry Median: 9.32 vs CHIX:FERGl: 66.47

Ferguson Enterprises Return-on-Tangible-Equity Historical Data

The historical data trend for Ferguson Enterprises'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.

Ferguson Enterprises Return-on-Tangible-Equity Chart

Ferguson Enterprises Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.23 59.56 103.08 94.80 76.83

Ferguson Enterprises Quarterly Data
Jan20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 53.02 73.94 72.09 73.57 45.36

Competitive Comparison of Ferguson Enterprises's Return-on-Tangible-Equity

For the Industrial Distribution subindustry, Ferguson Enterprises'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.


Ferguson Enterprises's Return-on-Tangible-Equity Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Return-on-Tangible-Equity distribution charts can be found below:

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


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Ferguson Enterprises Return-on-Tangible-Equity Calculation

Ferguson Enterprises's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jul. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jul. 2024 )  (A: Jul. 2023 )(A: Jul. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jul. 2024 )  (A: Jul. 2023 )(A: Jul. 2024 )
=1348.095/( (1562.088+1947.162 )/ 2 )
=1348.095/1754.625
=76.83 %

Ferguson Enterprises's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jan. 2025 )  (Q: Oct. 2024 )(Q: Jan. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jan. 2025 )  (Q: Oct. 2024 )(Q: Jan. 2025 )
=893.136/( (1972.724+1965.061)/ 2 )
=893.136/1968.8925
=45.36 %

* 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 four times the quarterly (Jan. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Ferguson Enterprises  (CHIX:FERGl) 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.


Ferguson Enterprises Return-on-Tangible-Equity Related Terms

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


Ferguson Enterprises Business Description

Traded in Other Exchanges
Address
751 Lakefront Commons, Newport News, VA, USA, 23606
Ferguson distributes plumbing and HVAC products to North American repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 36,000 suppliers. Ferguson engages customers through approximately 1,800 North American branches, over the phone, online, and in residential showrooms. According to Modern Distribution Management, Ferguson is the largest plumbing distributor and second-largest HVAC distributor (next to Watsco) in North America. The firm sold its UK business in 2021 and is now solely focused on the North American market.

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