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. Sigma-Aldrich's annualized net income for the quarter that ended in Sep. 2015 was €406 Mil. Sigma-Aldrich's average shareholder tangible equity for the quarter that ended in Sep. 2015 was €2,052 Mil. Therefore, Sigma-Aldrich's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2015 was 19.80%.
The historical rank and industry rank for Sigma-Aldrich's Return-on-Tangible-Equity or its related term are showing as below:
FRA:SIQ'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.38 Med: 30.46 Max: 35.39
Current: 22.38
During the past 13 years, Sigma-Aldrich's highest Return-on-Tangible-Equity was 35.39%. The lowest was 22.38%. And the median was 30.46%.
FRA:SIQ's Return-on-Tangible-Equity is not ranked
in the Chemicals industry.
Industry Median: 5.83
vs FRA:SIQ: 22.38
Sigma-Aldrich Return-on-Tangible-Equity Historical Data
The historical data trend for Sigma-Aldrich'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.
Competitive Comparison of Sigma-Aldrich's Return-on-Tangible-Equity
For the Specialty Chemicals subindustry, Sigma-Aldrich'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.
Sigma-Aldrich's Return-on-Tangible-Equity Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sigma-Aldrich's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sigma-Aldrich'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. 2015) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
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.
Sigma-Aldrich Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Sigma-Aldrich's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Sigma-Aldrich Corp was incorporated under the laws of the State of Delaware in May 1975. The Company is a life science and a technology company that helps in enhancing human health and safety. The Company manufactures and distributes chemicals, biochemicals and other essential products and equipment products to its customers in research and applied labs as well as in industrial and commercial markets. The Company operates in three units including Research, Applied and SAFC Commercial. The Research unit products and services includes chemicals, reagents and kits, enabling the scientists to discover and develop new drugs and materials; Applied unit products and services includes high quality components and kits, chemical reagents, critical raw materials and certified reference standards, providing customized solutions to and constitute critical components and materials for diagnostic companies, testing laboratories and industrial companies; SAFC Commercial unit's products and services are used by its customers to develop and manufacture pharma, biopharma and electronics products. Its customers include pharmaceutical companies, universities, commercial laboratories, industrial companies, biotechnology companies, non-profit organizations, governmental institutions, diagnostic, chemical and electronics companies and hospitals. The Company's trademarks are the brand names; Sigma-Aldrich, Sigma, Aldrich, Fluka, Riedel-de Haën, Supelco, SAFC, SAFC Biosciences, SAFC Hitech, Genosys, Proligo, Pharmorphix, Cerilliant, Vetec, BioReliance and Cell Marque. The Company is subject to extensive regulation by federal, state and local governments and similar international agencies relating to the manufacture, sale and distribution of its products.
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