CDU (LSE:CDU) Return-on-Tangible-Equity: -93.27% (As of Mar. 2010)


What is CDU Return-on-Tangible-Equity?

CDU LSE:CDU Return-on-Tangible-Equity is -93.27% as of Mar. 2010.

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. CDU's annualized net income for the quarter that ended in Mar. 2010 was £-0.70 Mil. CDU's average shareholder tangible equity for the quarter that ended in Mar. 2010 was £0.75 Mil. Therefore, CDU's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2010 was -93.27%.

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

LSE:CDU's Return-on-Tangible-Equity is not ranked *
in the industry.
Industry Median:
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

CDU  (LSE:CDU) 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.

CDU Return-on-Tangible-Equity Related Terms

CDU Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for CDU'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.

CDU Return-on-Tangible-Equity Chart

CDU Annual Data
Trend Sep99 Sep00 Sep01 Sep02 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.09 2.88 -20.26 -26.50 -98.08

CDU Semi-Annual Data
Mar02 Sep02 Mar03 Sep03 Mar04 Sep04 Mar05 Sep05 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.62 -55.13 0.15 -186.88 -93.27

CDU Return-on-Tangible-Equity Competitor Comparison

For the subindustry, CDU'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.

CDU Return-on-Tangible-Equity vs Industry

For the industry and sector, CDU's Return-on-Tangible-Equity distribution charts can be found below:

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


CDU Return-on-Tangible-Equity Calculation

CDU's annualized Return-on-Tangible-Equity for the fiscal year that ended in Sep. 2009 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Sep. 2009 )  (A: Sep. 2008 )(A: Sep. 2009 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Sep. 2009 )  (A: Sep. 2008 )(A: Sep. 2009 )
=-1.736/( (2.628+0.912 )/ 2 )
=-1.736/1.77
=-98.08 %

CDU's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2010 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2010 )  (Q: Sep. 2009 )(Q: Mar. 2010 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2010 )  (Q: Sep. 2009 )(Q: Mar. 2010 )
=-0.7/( (0.912+0.589)/ 2 )
=-0.7/0.7505
=-93.27 %

* 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 (Mar. 2010) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of -93.27% mean?
CDU (LSE:CDU) has a Return-on-Tangible-Equity of -93.27% as of Mar. 2010. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CDU and its competitors.
Is CDU's Return-on-Tangible-Equity too high?
CDU's current Return-on-Tangible-Equity is -93.27%.
How does CDU's Return-on-Tangible-Equity compare to competitors?
CDU's Return-on-Tangible-Equity is -93.27%. 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 company?
A good Return-on-Tangible-Equity depends on the 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 CDU and its competitors. CDU's current Return-on-Tangible-Equity is -93.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CDU stock overvalued right now?
CDU (LSE:CDU) has a current Return-on-Tangible-Equity of -93.27%. The current Return-on-Tangible-Equity is -93.27%. 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 CDU (LSE:CDU), the current Return-on-Tangible-Equity is -93.27% as of Mar. 2010. 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.