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. African Eagle Resources's annualized net income for the quarter that ended in Jun. 2014 was £-0.43 Mil. African Eagle Resources's average shareholder tangible equity for the quarter that ended in Jun. 2014 was £0.96 Mil. Therefore, African Eagle Resources's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2014 was -45.02%.
The historical rank and industry rank for African Eagle Resources's Return-on-Tangible-Equity or its related term are showing as below:
LSE:AFE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -684.4 Med: -39.14 Max: -9.87
Current: -152.45
During the past 13 years, African Eagle Resources's highest Return-on-Tangible-Equity was -9.87%. The lowest was -684.40%. And the median was -39.14%.
LSE:AFE's Return-on-Tangible-Equity is not ranked
in the Metals & Mining industry.
Industry Median: -16.5
vs LSE:AFE: -152.45
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.
African Eagle Resources Return-on-Tangible-Equity Related Terms
African Eagle Resources Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for African Eagle Resources'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.
For the Other Industrial Metals & Mining subindustry, African Eagle Resources'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.
African Eagle Resources Return-on-Tangible-Equity vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, African Eagle Resources's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where African Eagle Resources'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 two times the semi-annual (Jun. 2014) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -45.02% mean?
African Eagle Resources (LSE:AFE) has a Return-on-Tangible-Equity of -45.02% as of Jun. 2014. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on African Eagle Resources and its competitors.
Is African Eagle Resources' Return-on-Tangible-Equity too high?
African Eagle Resources' current Return-on-Tangible-Equity is -45.02%.
How does African Eagle Resources' Return-on-Tangible-Equity compare to competitors?
African Eagle Resources' Return-on-Tangible-Equity of -45.02% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good Return-on-Tangible-Equity depends on the Metals & Mining industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 African Eagle Resources and its competitors. African Eagle Resources's current Return-on-Tangible-Equity is -45.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Eagle Resources stock overvalued right now?
African Eagle Resources (LSE:AFE) has a current Return-on-Tangible-Equity of -45.02%. The current Return-on-Tangible-Equity is -45.02%. 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 African Eagle Resources (LSE:AFE), the current Return-on-Tangible-Equity is -45.02% as of Jun. 2014. 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.
African Eagle Resources PLC was incorporated on January 19, 2000. The Company is engaged in the exploration and development of nickel. The Company's Investing Policy is to seek opportunities in the natural resources, infrastructure and services sectors located in all geographic regions. It has 10% free carried interest in the Dutwa nickel project in Tanzania. It also has a shareholding of 14.4% in Elephant Copper Ltd a BVI registered company, with interests in copper projects in Zambia.
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