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. El Capitan Precious Metals's annualized net income for the quarter that ended in Sep. 2017 was $-10.26 Mil. El Capitan Precious Metals's average shareholder tangible equity for the quarter that ended in Sep. 2017 was $0.87 Mil. Therefore, El Capitan Precious Metals's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2017 was -1,184.30%.
The historical rank and industry rank for El Capitan Precious Metals's Return-on-Tangible-Equity or its related term are showing as below:
ECPN's Return-on-Tangible-Equity is not ranked *
in the Metals & Mining industry.
Industry Median: -16.365 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
El Capitan Precious Metals (OTCPK:ECPN) 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.
El Capitan Precious Metals Return-on-Tangible-Equity Related Terms
El Capitan Precious Metals Return-on-Tangible-Equity Historical Data
* 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.
El Capitan Precious Metals Return-on-Tangible-Equity Chart
ECPN vs MAGE: Return-on-Tangible-Equity Comparison
For the Other Precious Metals & Mining subindustry, El Capitan Precious Metals'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.
El Capitan Precious Metals Return-on-Tangible-Equity vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, El Capitan Precious Metals's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where El Capitan Precious Metals'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 four times the quarterly (Sep. 2017) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -1,184.30% mean?
El Capitan Precious Metals (ECPN) has a Return-on-Tangible-Equity of -1,184.30% as of Sep. 2017. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on El Capitan Precious Metals and its competitors.
Is El Capitan Precious Metals' Return-on-Tangible-Equity too high?
El Capitan Precious Metals' current Return-on-Tangible-Equity is -1,184.30%.
How does El Capitan Precious Metals' Return-on-Tangible-Equity compare to MAGE?
El Capitan Precious Metals' Return-on-Tangible-Equity of -1,184.30% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Metals & Mining company?
A good Return-on-Tangible-Equity depends on the Metals & Mining industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on El Capitan Precious Metals and its competitors. El Capitan Precious Metals's current Return-on-Tangible-Equity is -1,184.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is El Capitan Precious Metals stock overvalued right now?
El Capitan Precious Metals (ECPN) has a current Return-on-Tangible-Equity of -1,184.30%. The current Return-on-Tangible-Equity is -1,184.30%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For El Capitan Precious Metals (ECPN), the current Return-on-Tangible-Equity is -1,184.30% as of Sep. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
El Capitan Precious Metals Inc is an exploration stage mining company. It explores for precious metals and other minerals. The company owns an interest in El Capitan Ltd which holds an interest in the El Capitan property located in New Mexico. Its objective is to market and sell the El Capitan Property to a mining company or enter a joint venture arrangement with a mining company to conduct mining operations. The El Capitan property consists of more than 350 Bureau of Land Management lode claims and four patented claims.
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