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. KLM Royal Dutch Airlines's annualized net income for the quarter that ended in Dec. 2018 was $650.74 Mil. KLM Royal Dutch Airlines's average shareholder tangible equity for the quarter that ended in Dec. 2018 was $578.01 Mil. Therefore, KLM Royal Dutch Airlines's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2018 was 112.58%.
The historical rank and industry rank for KLM Royal Dutch Airlines's Return-on-Tangible-Equity or its related term are showing as below:
KLMR's Return-on-Tangible-Equity is not ranked *
in the Transportation industry.
Industry Median: 9.02 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
KLM Royal Dutch Airlines (OTCPK:KLMR) 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.
KLM Royal Dutch Airlines Return-on-Tangible-Equity Related Terms
KLM Royal Dutch Airlines Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for KLM Royal Dutch Airlines'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.
KLM Royal Dutch Airlines Return-on-Tangible-Equity Chart
For the Airlines subindustry, KLM Royal Dutch Airlines'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.
KLM Royal Dutch Airlines Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, KLM Royal Dutch Airlines's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where KLM Royal Dutch Airlines'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 one times the annual (Dec. 2018) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 112.58% mean?
KLM Royal Dutch Airlines (KLMR) has a Return-on-Tangible-Equity of 112.58% as of Dec. 2018. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on KLM Royal Dutch Airlines and its competitors.
Is KLM Royal Dutch Airlines' Return-on-Tangible-Equity too high?
KLM Royal Dutch Airlines' current Return-on-Tangible-Equity is 112.58%. The Transportation industry median Return-on-Tangible-Equity is 9.02. KLM Royal Dutch Airlines' value of 112.58% is 1148.1% above this industry median.
How does KLM Royal Dutch Airlines' Return-on-Tangible-Equity compare to ?
KLM Royal Dutch Airlines' Return-on-Tangible-Equity of 112.58% can be compared against companies in the Transportation industry. The industry median Return-on-Tangible-Equity is 9.02. KLM Royal Dutch Airlines' value of 112.58% is 1148.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 9.02, based on 977 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KLM Royal Dutch Airlines's current Return-on-Tangible-Equity of 112.58% is 1148.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on KLM Royal Dutch Airlines and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 9.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLM Royal Dutch Airlines's current Return-on-Tangible-Equity is 112.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLM Royal Dutch Airlines stock overvalued right now?
KLM Royal Dutch Airlines (KLMR) has a current Return-on-Tangible-Equity of 112.58%. The current Return-on-Tangible-Equity is 112.58% and 1148.1% above the Transportation industry median of 9.02. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For KLM Royal Dutch Airlines (KLMR), the current Return-on-Tangible-Equity is 112.58% as of Dec. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
KLM Royal Dutch Airlines is engaged in network activities, which include air transport of passengers and cargo activities, aircraft maintenance, leisure, and other activities linked to air transport. Its segments are: Network, which generates maximum revenue and includes transportation of passengers on scheduled flights, ancillary passenger revenues, SkyTeam alliance partnership arrangements, block-seat sales, transportation of freight, and sale of cargo capacity to third parties; Maintenance, which provides engine services, component services, and airframe maintenance to airlines and clients internationally; Leisure, which covers charter flights and low-cost scheduled flights operated by transavia.com; and Other segment. It generates maximum revenue from Europe and North Africa.
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