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. Avanta Serviced Office Group's annualized net income for the quarter that ended in Jun. 2014 was £2.74 Mil. Avanta Serviced Office Group's average shareholder tangible equity for the quarter that ended in Jun. 2014 was £5.46 Mil. Therefore, Avanta Serviced Office Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2014 was 50.14%.
The historical rank and industry rank for Avanta Serviced Office Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:ASOA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1588.57 Med: -2.77 Max: 219.21
Current: -15.56
During the past 13 years, Avanta Serviced Office Group's highest Return-on-Tangible-Equity was 219.21%. The lowest was -1,588.57%. And the median was -2.77%.
LSE:ASOA's Return-on-Tangible-Equity is not ranked
in the Asset Management industry.
Industry Median: 7.205
vs LSE:ASOA: -15.56
Avanta Serviced Office Group (LSE:ASOA) 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.
Avanta Serviced Office Group Return-on-Tangible-Equity Related Terms
Avanta Serviced Office Group Return-on-Tangible-Equity Historical Data
* 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.
Avanta Serviced Office Group Return-on-Tangible-Equity Chart
LSE:ASOA vs AINC, HCAP, OCCAF: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Avanta Serviced Office Group'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.
Avanta Serviced Office Group Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Avanta Serviced Office Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Avanta Serviced Office Group'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 50.14% mean?
Avanta Serviced Office Group (LSE:ASOA) has a Return-on-Tangible-Equity of 50.14% 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 Avanta Serviced Office Group and its competitors.
Is Avanta Serviced Office Group's Return-on-Tangible-Equity too high?
Avanta Serviced Office Group's current Return-on-Tangible-Equity is 50.14%. The Asset Management industry median Return-on-Tangible-Equity is 7.21. Avanta Serviced Office Group's value of 50.14% is 595.9% above this industry median.
How does Avanta Serviced Office Group's Return-on-Tangible-Equity compare to AINC and HCAP?
Avanta Serviced Office Group's Return-on-Tangible-Equity of 50.14% can be compared against companies in the Asset Management industry. The industry median Return-on-Tangible-Equity is 7.21. Avanta Serviced Office Group's value of 50.14% is 595.9% 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 an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.21, based on 1,588 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. Avanta Serviced Office Group's current Return-on-Tangible-Equity of 50.14% is 595.9% 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 Avanta Serviced Office Group and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avanta Serviced Office Group's current Return-on-Tangible-Equity is 50.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanta Serviced Office Group stock overvalued right now?
Avanta Serviced Office Group (LSE:ASOA) has a current Return-on-Tangible-Equity of 50.14%. The current Return-on-Tangible-Equity is 50.14% and 595.9% above the Asset Management industry median of 7.21. 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 Avanta Serviced Office Group (LSE:ASOA), the current Return-on-Tangible-Equity is 50.14% 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.
Serviced Office Group PLC is engaged in the ownership and operation of serviced office accommodation. Its reportable segments are Serviced office business and Managed serviced offices. Serviced office business undertaken in the group's freehold and leasehold properties; and Managed serviced office business undertaken under management contracts on behalf of third parties. The Group operates solely from the UK.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:ASOA has been successfully added to your 