Alternative Energy (LSE:ALR) Return-on-Tangible-Equity: 0.00% (As of Jun. 2014)


What is Alternative Energy Return-on-Tangible-Equity?

Alternative Energy LSE:ALR Return-on-Tangible-Equity is 0.00% as of Jun. 2014. The stock has 4 warning signs investors should review.

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. Alternative Energy's annualized net income for the quarter that ended in Jun. 2014 was £-1.96 Mil. Alternative Energy's average shareholder tangible equity for the quarter that ended in Jun. 2014 was £-4.69 Mil. Therefore, Alternative Energy's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2014 was N/A%.

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

LSE:ALR's Return-on-Tangible-Equity is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 4.695
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Alternative Energy  (LSE:ALR) 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.


Alternative Energy Return-on-Tangible-Equity Related Terms


Alternative Energy Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Alternative Energy'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.

Alternative Energy Return-on-Tangible-Equity Chart

Alternative Energy Annual Data
Trend Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Dec13
Return-on-Tangible-Equity
Get a 7-Day Free Trial -71.51 -304.03 0.00 0.00 0.00

Alternative Energy Semi-Annual Data
Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Jun13 Dec13 Jun14
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only 0.00 0.00 0.00 0.00 0.00

Alternative Energy Return-on-Tangible-Equity Competitor Comparison

For the Utilities - Independent Power Producers subindustry, Alternative Energy'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.


Alternative Energy Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Alternative Energy's Return-on-Tangible-Equity distribution charts can be found below:

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



Alternative Energy Return-on-Tangible-Equity Calculation

Alternative Energy'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: Aug. 2012 )(A: Dec. 2013 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2013 )  (A: Aug. 2012 )(A: Dec. 2013 )
=-9.636/( (-2.842+-4.682 )/ 2 )
=-9.636/-3.762
=N/A %

Alternative Energy's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2014 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2014 )  (Q: Dec. 2013 )(Q: Jun. 2014 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2014 )  (Q: Dec. 2013 )(Q: Jun. 2014 )
=-1.96/( (-4.682+-4.705)/ 2 )
=-1.96/-4.6935
=N/A %

* 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 0.00% mean?
Alternative Energy (LSE:ALR) has a Return-on-Tangible-Equity of 0.00% 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 Alternative Energy and its competitors.
Is Alternative Energy's Return-on-Tangible-Equity too high?
Alternative Energy's current Return-on-Tangible-Equity is 0.00%.
How does Alternative Energy's Return-on-Tangible-Equity compare to competitors?
Alternative Energy's Return-on-Tangible-Equity of 0.00% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Return-on-Tangible-Equity is 4.70. 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 an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.70, based on 426 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. 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 Alternative Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alternative Energy's current Return-on-Tangible-Equity is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alternative Energy stock overvalued right now?
Alternative Energy (LSE:ALR) has a current Return-on-Tangible-Equity of 0.00%. The current Return-on-Tangible-Equity is 0.00%. 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 Alternative Energy (LSE:ALR), the current Return-on-Tangible-Equity is 0.00% 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.

Alternative Energy Business Description

Alternative Energy Ltd provides technology, hardware and equipment for renewable energy and green energy solutions. Its solutions include Renewable Energy, The E-Roof - The PC of Energy, and AEL Energy Saving products such as eLIVE and eLUMEN. It also makes acquisitions to develop energy technologies, business and companies which offer an alternative to conventional fossil fuel and nuclear methods of generating household and industrial energy, as well as providing management services to its subsidiaries.