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. Avanti Communications Group's annualized net income for the quarter that ended in Jun. 2020 was £-116.97 Mil. Avanti Communications Group's average shareholder tangible equity for the quarter that ended in Jun. 2020 was £23.26 Mil. Therefore, Avanti Communications Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2020 was -502.92%.
The historical rank and industry rank for Avanti Communications Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:AVN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -180.2 Med: -18.99 Max: 2.16
Current: -224.47
During the past 13 years, Avanti Communications Group's highest Return-on-Tangible-Equity was 2.16%. The lowest was -180.20%. And the median was -18.99%.
LSE:AVN's Return-on-Tangible-Equity is not ranked
in the Telecommunication Services industry.
Industry Median: 14.005
vs LSE:AVN: -224.47
Avanti Communications Group (LSE:AVN) 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.
Avanti Communications Group Return-on-Tangible-Equity Related Terms
Avanti Communications 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.
Avanti Communications Group Return-on-Tangible-Equity Chart
LSE:AVN vs FNGR, FTRCQ, SYTE: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Avanti Communications 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.
Avanti Communications Group Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Avanti Communications Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Avanti Communications 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. 2020) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -502.92% mean?
Avanti Communications Group (LSE:AVN) has a Return-on-Tangible-Equity of -502.92% as of Jun. 2020. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Avanti Communications Group and its competitors.
Is Avanti Communications Group's Return-on-Tangible-Equity too high?
Avanti Communications Group's current Return-on-Tangible-Equity is -502.92%.
How does Avanti Communications Group's Return-on-Tangible-Equity compare to FNGR and FTRCQ?
Avanti Communications Group's Return-on-Tangible-Equity of -502.92% can be compared against companies in the Telecommunication Services industry. The industry median Return-on-Tangible-Equity is 14.01. 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.01, based on 326 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 Avanti Communications Group and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avanti Communications Group's current Return-on-Tangible-Equity is -502.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanti Communications Group stock overvalued right now?
Avanti Communications Group (LSE:AVN) has a current Return-on-Tangible-Equity of -502.92%. The current Return-on-Tangible-Equity is -502.92%. 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 Avanti Communications Group (LSE:AVN), the current Return-on-Tangible-Equity is -502.92% as of Jun. 2020. 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.
Avanti Communications Group PLC sells managed satellite data communications products to service providers on a wholesale basis. It uses the high-frequency Ka-band spectrum. The company's operating segments include Bandwidth and services, and Equipment. Its network can provide download speeds of up to 380Mbps. The company generates its revenues from the utilisation of its space assets, namely its spectrum rights and satellites. These assets include its spectrum rights, satellites, intellectual property, and ground station assets. It serves customers across Europe, the Middle East, and Africa.
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