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. tw telecom's annualized net income for the quarter that ended in Jun. 2014 was €33 Mil. tw telecom's average shareholder tangible equity for the quarter that ended in Jun. 2014 was €89 Mil. Therefore, tw telecom's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2014 was 37.04%.
The historical rank and industry rank for tw telecom's Return-on-Tangible-Equity or its related term are showing as below:
FRA:TWM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -62.68 Med: -12.92 Max: 65.03
Current: 11.01
During the past 13 years, tw telecom's highest Return-on-Tangible-Equity was 65.03%. The lowest was -62.68%. And the median was -12.92%.
FRA:TWM's Return-on-Tangible-Equity is not ranked
in the Telecommunication Services industry.
Industry Median: 13.415
vs FRA:TWM: 11.01
tw telecom Return-on-Tangible-Equity Historical Data
The historical data trend for tw telecom'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 tw telecom's Return-on-Tangible-Equity
For the Telecom Services subindustry, tw telecom'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.
tw telecom's Return-on-Tangible-Equity Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, tw telecom's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where tw telecom's Return-on-Tangible-Equity falls into.
tw telecom Return-on-Tangible-Equity Calculation
tw telecom's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2013 is calculated as
* 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 (Jun. 2014) 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.
tw telecom Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of tw telecom's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Tw telecom inc was formed in 1998. The Company together with its wholly-owned subsidiaries provide managed network services, specializing in business Ethernet, data networking, Converged, IP-based virtual private network or "IP VPN", Internet access, voice, including voice over Internet Protocol or "VoIP", and network security services to enterprise organizations, including public sector entities, and carriers throughout the U.S., including global locations. It offers a portfolio of solutions to its customers with predictable and reliable service quality. It designs and deliver scalable and efficient solutions that enable its customers complex and evolving business applications. These solutions emphasize its data networking service offerings, which include an expanding portfolio of business Ethernet data services, managed network services and its converged service offerings comprised of data, Internet, voice, security, remote access and managed routers. It also provides a broad range of traditional services, including a dedicated network service portfolio with private line, special access and private transport services, voice services and secure Internet access. Its customers include enterprise organizations in a wide variety of industry segments, including, among others, the financial services, technology and science, health care, distribution, manufacturing and professional services industries, data centers, cloud application providers, public sector entities, system integrators and communications service providers, including ILECs, CLECs, wireless communications companies and cable companies. Its primary competition is from the ILECs, CLECs and cable companies. The ILECs, primarily AT&T Inc., Verizon Communications, Inc. and CenturyLink Inc., other CLECs and some cable companies offer services substantially similar to some of those it offers and target some of the same customers. The Company is subject to regulation by the Federal Communications Commission ("FCC"), state regulatory authorities and local government agencies.
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