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. South32's annualized net income for the quarter that ended in Dec. 2023 was £84 Mil. South32's average shareholder tangible equity for the quarter that ended in Dec. 2023 was £7,168 Mil. Therefore, South32's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 1.17%.
The historical rank and industry rank for South32's Return-on-Tangible-Equity or its related term are showing as below:
LSE:S32'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -16.63 Med: 0.13 Max: 28.62
Current: -8.5
During the past 12 years, South32's highest Return-on-Tangible-Equity was 28.62%. The lowest was -16.63%. And the median was 0.13%.
LSE:S32's Return-on-Tangible-Equity is ranked better than 63.21% of 2468
companies
in the Metals & Mining industry
Industry Median: -16.535
vs LSE:S32: -8.50
South32 Return-on-Tangible-Equity Historical Data
The historical data trend for South32'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.
Competitive Comparison of South32's Return-on-Tangible-Equity
For the Other Industrial Metals & Mining subindustry, South32'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.
South32's Return-on-Tangible-Equity Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, South32's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where South32's Return-on-Tangible-Equity falls into.
South32 Return-on-Tangible-Equity Calculation
South32's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2023 is calculated as
* 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 (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
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.
South32 Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of South32's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
South32 was born of the demerger of noncore assets from BHP in 2015. South32's major operations include alumina businesses in Australia and Brazil, aluminium in Brazil, South Africa, and Mozambique, manganese businesses in Australia and South Africa, and New South Wales metallurgical coal. It also owns the Cannington silver/lead/zinc mine in northwest Queensland and the Cerro Matoso nickel mine in Colombia. Cannington silver mine and manganese operations deliver high returns, but have relatively short reserve life. The company acquired Arizona Mining, which brings with it the high-grade and likely low-cost Taylor deposit in the U.S., and also entered the copper business in 2022 via the purchase of a 45% stake in the Sierra Gorda mine in Chile.
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