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. Industria Automotriz de CV's annualized net income for the quarter that ended in Jun. 2011 was MXN13.97 Mil. Industria Automotriz de CV's average shareholder tangible equity for the quarter that ended in Jun. 2011 was MXN-179.37 Mil. Therefore, Industria Automotriz de CV's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2011 was Negative Tangible Equity%.
The historical rank and industry rank for Industria Automotriz de CV's Return-on-Tangible-Equity or its related term are showing as below:
MEX:IASASA's Return-on-Tangible-Equity is not ranked *
in the Vehicles & Parts industry.
Industry Median: 7.47 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Industria Automotriz de CV (MEX:IASASA) 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.
Industria Automotriz de CV Return-on-Tangible-Equity Related Terms
Industria Automotriz de CV 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.
Industria Automotriz de CV Return-on-Tangible-Equity Chart
MEX:IASASA vs CSHEF, AMTY, OMTK: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, Industria Automotriz de CV'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.
Industria Automotriz de CV Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Industria Automotriz de CV's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Industria Automotriz de CV'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 four times the quarterly (Jun. 2011) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Industria Automotriz de CV (MEX:IASASA) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Jun. 2011. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Industria Automotriz de CV and its competitors.
Is Industria Automotriz de CV's Return-on-Tangible-Equity too high?
Industria Automotriz de CV's current Return-on-Tangible-Equity is Negative Tangible Equity%.
How does Industria Automotriz de CV's Return-on-Tangible-Equity compare to CSHEF and AMTY?
Industria Automotriz de CV's Return-on-Tangible-Equity of Negative Tangible Equity% can be compared against companies in the Vehicles & Parts industry. The industry median Return-on-Tangible-Equity is 7.47. 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.47, based on 1,285 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 Industria Automotriz de CV and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Industria Automotriz de CV's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Industria Automotriz de CV stock overvalued right now?
Industria Automotriz de CV (MEX:IASASA) has a current Return-on-Tangible-Equity of Negative Tangible Equity%. The current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Industria Automotriz de CV (MEX:IASASA), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Jun. 2011. 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.
Industria Automotriz SA de CV is engaged in manufacturing of stamping, assemblies and subassemblies for the automotive industry. The company also manufactures dies and tool, assembly attachments and attachments to check the produced pieces.
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