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Magna International (MEX:MGA N) Return-on-Tangible-Equity : 7.06% (As of Mar. 2025)


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What is Magna International 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. Magna International's annualized net income for the quarter that ended in Mar. 2025 was MXN11,948 Mil. Magna International's average shareholder tangible equity for the quarter that ended in Mar. 2025 was MXN169,175 Mil. Therefore, Magna International's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 7.06%.

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

MEX:MGA N' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.91   Med: 18.97   Max: 29.84
Current: 13.87

During the past 13 years, Magna International's highest Return-on-Tangible-Equity was 29.84%. The lowest was 6.91%. And the median was 18.97%.

MEX:MGA N's Return-on-Tangible-Equity is ranked better than
72.54% of 1260 companies
in the Vehicles & Parts industry
Industry Median: 7.58 vs MEX:MGA N: 13.87

Magna International Return-on-Tangible-Equity Historical Data

The historical data trend for Magna International'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.

Magna International Return-on-Tangible-Equity Chart

Magna International Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.05 17.06 6.52 13.52 13.62

Magna International Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 0.44 16.33 23.93 9.97 7.06

Competitive Comparison of Magna International's Return-on-Tangible-Equity

For the Auto Parts subindustry, Magna International'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.


Magna International's Return-on-Tangible-Equity Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Magna International's Return-on-Tangible-Equity distribution charts can be found below:

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


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Magna International Return-on-Tangible-Equity Calculation

Magna International's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=21043.401/( (139884.778+169139.727 )/ 2 )
=21043.401/154512.2525
=13.62 %

Magna International's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=11947.588/( (169139.727+169209.772)/ 2 )
=11947.588/169174.7495
=7.06 %

* 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 (Mar. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Magna International  (MEX:MGA N) 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.


Magna International Return-on-Tangible-Equity Related Terms

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


Magna International Business Description

Traded in Other Exchanges
Address
337 Magna Drive, Aurora, ON, CAN, L4G 7K1
Magna International prides itself on an entrepreneurial culture and a corporate constitution that outlines the distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contract vehicle assembly. In 2024, 48% of Magna's USD 42.8 billion of revenue came from North America, while Europe accounted for approximately 37% and Asia the remainder. The firm's top six customers constituted 72.9% of revenue, with the top three being GM, Mercedes, and Ford. GM was the largest contributor at 15.4%. Magna was founded in 1957, has over 170,000 employees, and is based in Aurora, Ontario.

Magna International Headlines

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