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Luxottica Group SpA (Luxottica Group SpA) Return-on-Tangible-Equity : 103.62% (As of Jun. 2018)


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What is Luxottica Group SpA Return-on-Tangible-Equity?

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. Luxottica Group SpA's annualized net income for the quarter that ended in Jun. 2018 was $1,239 Mil. Luxottica Group SpA's average shareholder tangible equity for the quarter that ended in Jun. 2018 was $1,196 Mil. Therefore, Luxottica Group SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2018 was 103.62%.

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

LUXTY's Return-on-Tangible-Equity is not ranked *
in the Retail - Cyclical industry.
Industry Median: 7.54
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Luxottica Group SpA Return-on-Tangible-Equity Historical Data

The historical data trend for Luxottica Group SpA'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.

* Premium members only.

Luxottica Group SpA Return-on-Tangible-Equity Chart

Luxottica Group SpA Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity 31,763.92 275.57 207.02 155.01

Luxottica Group SpA Semi-Annual Data
Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18
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 Premium Member Only Premium Member Only Premium Member Only 264.19 182.73 222.82 125.00 103.62

Competitive Comparison of Luxottica Group SpA's Return-on-Tangible-Equity

For the Apparel Retail subindustry, Luxottica Group SpA'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.


Luxottica Group SpA's Return-on-Tangible-Equity Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Luxottica Group SpA's Return-on-Tangible-Equity distribution charts can be found below:

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



Luxottica Group SpA Return-on-Tangible-Equity Calculation

Luxottica Group SpA's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2017 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2017 )  (A: Dec. 2016 )(A: Dec. 2017 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2017 )  (A: Dec. 2016 )(A: Dec. 2017 )
=1228.929/( (457.557+1128.062 )/ 2 )
=1228.929/792.8095
=155.01 %

Luxottica Group SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2018 )  (Q: Dec. 2017 )(Q: Jun. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2018 )  (Q: Dec. 2017 )(Q: Jun. 2018 )
=1238.762/( (1128.062+1263.015)/ 2 )
=1238.762/1195.5385
=103.62 %

* 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. 2018) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Luxottica Group SpA  (OTCPK:LUXTY) 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.


Luxottica Group SpA Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Luxottica Group SpA's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Luxottica Group SpA (Luxottica Group SpA) Business Description

Traded in Other Exchanges
N/A
Address
Piazzale L. Cadorna, 3, Milan, ITA, 20123
Luxottica designs, manufactures, and distributes high-quality prescription eyewear, frames and sunglasses. The company markets owned brands, including Ray-Ban, Oakley, Revo, and Arnette, as well as licensed brands, including Coach, Prada, Kors, and Polo Ralph Lauren. Luxottica is North America's largest eyewear retailer, with over 4,600 stores, through its Sunglass Hut, LensCrafters, Pearle Vision, Target Optical, and Ilori brands. The company also operates retail chains in Asia, Australia, South America, and Israel, totalling over 7,000 doors.

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