PetSmart (FRA:PEM) Return-on-Tangible-Equity : 35.25% (As of Oct. 2014)

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What is PetSmart 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. PetSmart's annualized net income for the quarter that ended in Oct. 2014 was €291 Mil. PetSmart's average shareholder tangible equity for the quarter that ended in Oct. 2014 was €825 Mil. Therefore, PetSmart's annualized Return-on-Tangible-Equity for the quarter that ended in Oct. 2014 was 35.25%.

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

FRA:PEM's Return-on-Tangible-Equity is not ranked ^*
in the Retail - Cyclical industry.
Industry Median: 7.285
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

PetSmart Return-on-Tangible-Equity Historical Data

The historical data trend for PetSmart'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.

PetSmart Return-on-Tangible-Equity Chart

PetSmart Annual Data

Trend

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Return-on-Tangible-Equity

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21.95

26.42

35.04

38.87

40.52

PetSmart Quarterly Data
	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15
Return-on-Tangible-Equity	Get a 7-Day Free Trial															47.54	39.59	36.90	35.25	48.86

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

For the Specialty Retail subindustry, PetSmart'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.

PetSmart's Return-on-Tangible-Equity Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, PetSmart's Return-on-Tangible-Equity distribution charts can be found below:

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

PetSmart Return-on-Tangible-Equity Calculation

PetSmart's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jan. 2014 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(A: Jan. 2014 )		(A: Jan. 2013 )		(A: Jan. 2014 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets )	/ count )
		(A: Jan. 2014 )		(A: Jan. 2013 )		(A: Jan. 2014 )
	=	307.928	/	( (811.671	+	772.639 )	/ 2 )
	=	307.928	/	792.155
	=	38.87 %

PetSmart's annualized Return-on-Tangible-Equity for the quarter that ended in Oct. 2014 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(Q: Oct. 2014 )		(Q: Jul. 2014 )		(Q: Oct. 2014 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets)	/ count )
		(Q: Oct. 2014 )		(Q: Jul. 2014 )		(Q: Oct. 2014 )
	=	290.844	/	( (826.303	+	824.059)	/ 2 )
	=	290.844	/	825.181
	=	35.25 %

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

PetSmart (FRA:PEM) 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.

PetSmart Return-on-Tangible-Equity Related Terms

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

PetSmart (FRA:PEM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » PetSmart Inc (FRA:PEM) » Definitions » Return-on-Tangible-Equity

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PetSmart Inc was incorporated in the State of Delaware in 1986. The Company provides specialty products, services and solutions for the lifetime needs of pets in North America. It offers a broad selection of products for all the life stages of pets, as well as various pet services including professional grooming, training, day camp for dogs and boarding. It also offers pet products through its website, PetSmart.com. As of 2 February 2014, it operated 1,333 retail stores and had full-service veterinary hospitals in 844 of its stores. MMI Holdings, Inc., through a wholly owned subsidiary, Medical Management International, Inc., operated 837 of the veterinary hospitals under the registered trade name of "Banfield, The Pet Hospital." The remaining 7 hospitals are operated by other third parties in Canada. The Company opened 55 net new stores in 2013 and at the end of the year operated 1,333 retail stores in the United States, Puerto Rico and Canada. Its stores typically range in size from 12,000 to 27,500 square feet and carry a broad selection of high-quality pet products at everyday low prices. It offers approximately 11,000 distinct items in stores and 9,000 additional items on its website, PetSmart.com, including nationally recognized brand names, as well as an extensive selection of proprietary brands across a range of product categories. All the Company's stores feature pet styling salons that provide high-quality grooming services and offer comprehensive pet training services. Its PetsHotels provide boarding for dogs and cats, which includes 24-hour supervision by caregivers who are trained to provide personalized pet care, temperature controlled rooms and suites, daily specialty treats and play time, as well as day camp for dogs. As of 3 February 2014, it operated 199 PetsHotels. The Company's trademarks include PetSmart, PetSmart.com, PetSmart PetsHotel, PetPerks, and Where Pets Are Family, as well as many others.

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