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Kinder Morgan Energy Partners LP (FRA:KM7) Return-on-Tangible-Equity : 47.11% (As of Sep. 2014)


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What is Kinder Morgan Energy Partners LP 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. Kinder Morgan Energy Partners LP's annualized net income for the quarter that ended in Sep. 2014 was €2,989 Mil. Kinder Morgan Energy Partners LP's average shareholder tangible equity for the quarter that ended in Sep. 2014 was €6,346 Mil. Therefore, Kinder Morgan Energy Partners LP's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2014 was 47.11%.

The historical rank and industry rank for Kinder Morgan Energy Partners LP's Return-on-Tangible-Equity or its related term are showing as below:

FRA:KM7' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.98   Med: 23.74   Max: 48.74
Current: 39.29

During the past 13 years, Kinder Morgan Energy Partners LP's highest Return-on-Tangible-Equity was 48.74%. The lowest was 8.98%. And the median was 23.74%.

FRA:KM7's Return-on-Tangible-Equity is not ranked
in the Oil & Gas industry.
Industry Median: 8.085 vs FRA:KM7: 39.29

Kinder Morgan Energy Partners LP Return-on-Tangible-Equity Historical Data

The historical data trend for Kinder Morgan Energy Partners LP'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.

Kinder Morgan Energy Partners LP Return-on-Tangible-Equity Chart

Kinder Morgan Energy Partners LP Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.30 25.16 23.81 25.43 47.86

Kinder Morgan Energy Partners LP Quarterly Data
Sep09 Dec09 Mar10 Jun10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 36.25 41.30 37.05 32.45 47.11

Competitive Comparison of Kinder Morgan Energy Partners LP's Return-on-Tangible-Equity

For the Oil & Gas Midstream subindustry, Kinder Morgan Energy Partners LP'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.


Kinder Morgan Energy Partners LP's Return-on-Tangible-Equity Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Kinder Morgan Energy Partners LP's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Kinder Morgan Energy Partners LP's Return-on-Tangible-Equity falls into.



Kinder Morgan Energy Partners LP Return-on-Tangible-Equity Calculation

Kinder Morgan Energy Partners LP's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2013 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=2395.13/( (4284.726+5723.2 )/ 2 )
=2395.13/5003.963
=47.86 %

Kinder Morgan Energy Partners LP's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2014 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2014 )  (Q: Jun. 2014 )(Q: Sep. 2014 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2014 )  (Q: Jun. 2014 )(Q: Sep. 2014 )
=2989.152/( (6072.736+6618.504)/ 2 )
=2989.152/6345.62
=47.11 %

* 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. 2014) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Kinder Morgan Energy Partners LP  (FRA:KM7) 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.


Kinder Morgan Energy Partners LP Return-on-Tangible-Equity Related Terms

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


Kinder Morgan Energy Partners LP (FRA:KM7) Business Description

Traded in Other Exchanges
N/A
Address
Kinder Morgan Energy Partners LP is a Delaware limited partnership formed in August 1992. The Company is engaged in pipeline transportation and energy storage company in North America. They own an interest in or operate approximately 52,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and its terminals store petroleum products, ethanol and chemicals, and handle such products as coal, petroleum coke and steel. They are also the producer and transporter of CO2, for enhanced oil recovery projects in North America. Its operations are conducted through our five operating limited partnerships and their subsidiaries and are grouped into five reportable business segments: Natural Gas Pipelines—consists of approximately 40,000 miles of natural gas transmission pipelines and gathering lines, plus natural gas storage, treating and processing facilities, through which natural gas is gathered, transported, stored, treated, processed and sold; O2—which produces, markets and transports, through approximately 1,500 miles of pipelines, CO2 to oil fields that use CO2 to increase production of oil; owns interests in and/or operate four primary oil fields in West Texas; and owns and operates a 450-mile crude oil pipeline system in West Texas; Products Pipelines—consists of approximately 9,000 miles of refined petroleum products and crude oil and condensate pipelines that deliver refined petroleum products (gasoline, diesel fuel and jet fuel), NGL, crude oil, condensate and bio-fuels to various markets; plus approximately 62 associated product terminals and petroleum pipeline transmix processing facilities serving customers across the U.S.; Terminals—consists of approximately 122 owned or operated liquids and bulk terminal facilities and approximately 10 rail transloading and materials handling facilities located throughout the U.S. and portions of Canada, which together transload, store and deliver a wide variety of bulk, petroleum, petrochemical and other liquids products for customers across the U.S. and Canada; and Kinder Morgan Canada—transports crude oil and refined petroleum products through approximately 800 miles of pipelines from Alberta, Canada to marketing terminals and refineries in British Columbia and the state of Washington; plus five associated product terminal facilities. The Company's business operations are subject to federal, state, provincial and local laws and regulations relating to environmental protection, pollution and human health and safety in the U.S. and Canada.

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