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Equity Commonwealth (FRA:HP5A) Return-on-Tangible-Equity : -4.26% (As of Sep. 2024)


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What is Equity Commonwealth 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. Equity Commonwealth's annualized net income for the quarter that ended in Sep. 2024 was €-94.38 Mil. Equity Commonwealth's average shareholder tangible equity for the quarter that ended in Sep. 2024 was €2,216.30 Mil. Therefore, Equity Commonwealth's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2024 was -4.26%.

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

FRA:HP5A' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.52   Med: 3.32   Max: 15.33
Current: 2.08

During the past 13 years, Equity Commonwealth's highest Return-on-Tangible-Equity was 15.33%. The lowest was -0.52%. And the median was 3.32%.

FRA:HP5A's Return-on-Tangible-Equity is ranked worse than
64.76% of 908 companies
in the REITs industry
Industry Median: 5.355 vs FRA:HP5A: 2.08

Equity Commonwealth Return-on-Tangible-Equity Historical Data

The historical data trend for Equity Commonwealth'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.

Equity Commonwealth Return-on-Tangible-Equity Chart

Equity Commonwealth 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 15.51 13.29 -0.54 1.31 3.45

Equity Commonwealth Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 4.45 4.43 4.25 4.01 -4.26

Competitive Comparison of Equity Commonwealth's Return-on-Tangible-Equity

For the REIT - Office subindustry, Equity Commonwealth'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.


Equity Commonwealth's Return-on-Tangible-Equity Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Equity Commonwealth's Return-on-Tangible-Equity distribution charts can be found below:

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



Equity Commonwealth Return-on-Tangible-Equity Calculation

Equity Commonwealth'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 )
=83.597/( (2658.802+2187.106 )/ 2 )
=83.597/2422.954
=3.45 %

Equity Commonwealth's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=-94.384/( (2261.45+2171.153)/ 2 )
=-94.384/2216.3015
=-4.26 %

* 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. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Equity Commonwealth  (FRA:HP5A) 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.


Equity Commonwealth Return-on-Tangible-Equity Related Terms

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


Equity Commonwealth Business Description

Industry
Traded in Other Exchanges
Address
Two North Riverside Plaza, Suite 2100, Chicago, IL, USA, 60606
Equity Commonwealth is a real estate investment trust engaged in the acquisition, ownership, and operation of office buildings located throughout the United States. The vast majority of the company's real estate portfolio comprises office assets. These properties are fairly evenly dispersed between many of America's urban markets, notably Washington, Austin, and Denver. Equity Commonwealth derives the vast majority of its income in the form of rental revenue from tenants occupying its offices.

Equity Commonwealth Headlines

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