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Orsted AS (CHIX:ORSTEC) Return-on-Tangible-Equity : 22.34% (As of Mar. 2025)


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What is Orsted AS 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. Orsted AS's annualized net income for the quarter that ended in Mar. 2025 was kr18,376 Mil. Orsted AS's average shareholder tangible equity for the quarter that ended in Mar. 2025 was kr82,248 Mil. Therefore, Orsted AS's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 22.34%.

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

CHIX:ORSTEc' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -25.64   Med: 14.7   Max: 32.74
Current: 2.26

During the past 12 years, Orsted AS's highest Return-on-Tangible-Equity was 32.74%. The lowest was -25.64%. And the median was 14.70%.

CHIX:ORSTEc's Return-on-Tangible-Equity is ranked worse than
65.55% of 418 companies
in the Utilities - Independent Power Producers industry
Industry Median: 6.53 vs CHIX:ORSTEc: 2.26

Orsted AS Return-on-Tangible-Equity Historical Data

The historical data trend for Orsted AS'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.

Orsted AS Return-on-Tangible-Equity Chart

Orsted AS Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.37 12.57 18.00 -25.64 -0.27

Orsted AS Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 13.60 -8.87 25.37 -29.89 22.34

Competitive Comparison of Orsted AS's Return-on-Tangible-Equity

For the Utilities - Renewable subindustry, Orsted AS'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.


Orsted AS's Return-on-Tangible-Equity Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Orsted AS's Return-on-Tangible-Equity distribution charts can be found below:

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


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Orsted AS Return-on-Tangible-Equity Calculation

Orsted AS's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=-206/( (72459+80482 )/ 2 )
=-206/76470.5
=-0.27 %

Orsted AS's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=18376/( (80482+84014)/ 2 )
=18376/82248
=22.34 %

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


Orsted AS  (CHIX:ORSTEc) 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.


Orsted AS Return-on-Tangible-Equity Related Terms

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


Orsted AS Business Description

Address
Kraftvaerksvej 53, Skaerbaek, Fredericia, DNK, DK-7000
Danish company Orsted was named Dong Energy until the sale of all its oil and gas fields to Ineos in 2017, soon after the May 2016 initial public offering. Orsted is now focused on renewable assets, especially offshore wind farms. It operated 9.9 gigawatts of offshore wind farms at the end of 2024. The United Kingdom is the biggest country of operation, ahead of Germany and Denmark. The group intends to develop its footprint outside Europe with projects in Taiwan and in the US. Orsted also operates 4.8 GW of onshore wind and solar assets concentrated in the United States. The company is involved in more traditional utilities business like conventional power plants and gas supply, but these activities are noncore.

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