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Precision Auto Care (Precision Auto Care) Return-on-Tangible-Equity : 12.20% (As of Mar. 2017)


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What is Precision Auto Care 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. Precision Auto Care's annualized net income for the quarter that ended in Mar. 2017 was $1.21 Mil. Precision Auto Care's average shareholder tangible equity for the quarter that ended in Mar. 2017 was $9.90 Mil. Therefore, Precision Auto Care's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2017 was 12.20%.

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

PACI's Return-on-Tangible-Equity is not ranked *
in the Personal Services industry.
Industry Median: 12.45
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Precision Auto Care Return-on-Tangible-Equity Historical Data

The historical data trend for Precision Auto Care'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.

Precision Auto Care Return-on-Tangible-Equity Chart

Precision Auto Care Annual Data
Trend Jun02 Jun03 Jun04 Jun05 Jun06 Jun07 Jun08 Jun14 Jun15 Jun16
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.15 6.05 10.71 7.72 12.32

Precision Auto Care Quarterly Data
Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 12.91 18.32 12.62 1.38 12.20

Competitive Comparison of Precision Auto Care's Return-on-Tangible-Equity

For the Personal Services subindustry, Precision Auto Care'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.


Precision Auto Care's Return-on-Tangible-Equity Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Precision Auto Care's Return-on-Tangible-Equity distribution charts can be found below:

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



Precision Auto Care Return-on-Tangible-Equity Calculation

Precision Auto Care's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2016 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jun. 2016 )  (A: Jun. 2015 )(A: Jun. 2016 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jun. 2016 )  (A: Jun. 2015 )(A: Jun. 2016 )
=1.122/( (8.674+9.547 )/ 2 )
=1.122/9.1105
=12.32 %

Precision Auto Care's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2017 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2017 )  (Q: Dec. 2016 )(Q: Mar. 2017 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2017 )  (Q: Dec. 2016 )(Q: Mar. 2017 )
=1.208/( (9.945+9.861)/ 2 )
=1.208/9.903
=12.20 %

* 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. 2017) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Precision Auto Care  (OTCPK:PACI) 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.


Precision Auto Care Return-on-Tangible-Equity Related Terms

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


Precision Auto Care (Precision Auto Care) Business Description

Traded in Other Exchanges
N/A
Address
Precision Auto Care Inc provides automotive maintenance services. The company's operations include Precision Tune Auto Care, an international franchisor of automotive service centers; Precision Auto Wash, an operator and franchisor of self-service car wash centers; and Precision Lube Express, an operator and franchisor of oil change and lube centers. Precision Auto Care also distributes automotive parts, equipment, and supplies.