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Indesit Co (Indesit Co) Return-on-Tangible-Equity : 13.52% (As of Sep. 2014)


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What is Indesit Co 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. Indesit Co's annualized net income for the quarter that ended in Sep. 2014 was $24.23 Mil. Indesit Co's average shareholder tangible equity for the quarter that ended in Sep. 2014 was $179.18 Mil. Therefore, Indesit Co's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2014 was 13.52%.

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

IDESY' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.48   Med: 30.18   Max: 87.98
Current: 11.75

During the past 13 years, Indesit Co's highest Return-on-Tangible-Equity was 87.98%. The lowest was 0.48%. And the median was 30.18%.

IDESY's Return-on-Tangible-Equity is not ranked
in the Hardware industry.
Industry Median: 5.38 vs IDESY: 11.75

Indesit Co Return-on-Tangible-Equity Historical Data

The historical data trend for Indesit Co'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.

Indesit Co Return-on-Tangible-Equity Chart

Indesit Co 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 30.87 45.98 25.56 28.77 1.95

Indesit Co Quarterly Data
Dec09 Mar10 Jun10 Sep10 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 25.85 34.61 -21.15 17.16 13.52

Competitive Comparison of Indesit Co's Return-on-Tangible-Equity

For the Consumer Electronics subindustry, Indesit Co'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.


Indesit Co's Return-on-Tangible-Equity Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Indesit Co's Return-on-Tangible-Equity distribution charts can be found below:

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



Indesit Co Return-on-Tangible-Equity Calculation

Indesit Co'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 )
=4.384/( (276.772+173.287 )/ 2 )
=4.384/225.0295
=1.95 %

Indesit Co'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 )
=24.228/( (184.647+173.711)/ 2 )
=24.228/179.179
=13.52 %

* 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.


Indesit Co  (OTCPK:IDESY) 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.


Indesit Co Return-on-Tangible-Equity Related Terms

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


Indesit Co (Indesit Co) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Indesit Co is founded in 1975. The Company is engaged in the production and distribution of appliances such as washing machines, dryers, dishwashers, fridges, freezers, cookers, hoods, ovens and hobs. The Company's geographical segments are Western Europe, Eastern Europe and International. It operates mainly in Italy, Poland, the UK, Russia and Turkey. Its main brands are Indesit, Hotpoint and Scholtès. The Company is subject to various national and international laws and regulations.

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