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Precicion Trim (Precicion Trim) Return-on-Tangible-Equity : 34.62% (As of Sep. 2011)


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What is Precicion Trim 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. Precicion Trim's annualized net income for the quarter that ended in Sep. 2011 was $5.07 Mil. Precicion Trim's average shareholder tangible equity for the quarter that ended in Sep. 2011 was $14.65 Mil. Therefore, Precicion Trim's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2011 was 34.62%.

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

PRTR's Return-on-Tangible-Equity is not ranked *
in the Industrial Products industry.
Industry Median: 7.53
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Precicion Trim Return-on-Tangible-Equity Historical Data

The historical data trend for Precicion Trim'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.

Precicion Trim Return-on-Tangible-Equity Chart

Precicion Trim Annual Data
Trend Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 76.23 18.84 8.68 6.04 44.26

Precicion Trim Quarterly Data
Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11
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 45.96 35.75 23.55 26.16 34.62

Competitive Comparison of Precicion Trim's Return-on-Tangible-Equity

For the Tools & Accessories subindustry, Precicion Trim'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.


Precicion Trim's Return-on-Tangible-Equity Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Precicion Trim's Return-on-Tangible-Equity distribution charts can be found below:

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



Precicion Trim Return-on-Tangible-Equity Calculation

Precicion Trim's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2010 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2010 )  (A: Dec. 2009 )(A: Dec. 2010 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2010 )  (A: Dec. 2009 )(A: Dec. 2010 )
=6.577/( (11.232+18.491 )/ 2 )
=6.577/14.8615
=44.26 %

Precicion Trim's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2011 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2011 )  (Q: Jun. 2011 )(Q: Sep. 2011 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2011 )  (Q: Jun. 2011 )(Q: Sep. 2011 )
=5.072/( (13.94+15.357)/ 2 )
=5.072/14.6485
=34.62 %

* 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 four times the quarterly (Sep. 2011) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Precicion Trim  (OTCPK:PRTR) 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.


Precicion Trim Return-on-Tangible-Equity Related Terms

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


Precicion Trim (Precicion Trim) Business Description

Traded in Other Exchanges
N/A
Address
17011 Beach Boulevard, 9th Floor, Huntington Beach, CA, USA, 92647
Precicion Trim Inc is a United States based company operating in the machine automation and development field. It designs, manufactures and distributes robotic and non-robotic machines in a wide variety of industries. The company is focused on the development and design of its flower trimming equipment. The equipment will be able to trim the head off of flowering plants at a distance that is programmable by the user. In addition, the company also owns medical devices.
Executives
Kenneth Leung director 257 GOLD STREET APT. 14B BROOKLYN NY 11201
Joseph Charles Passalaqua 10 percent owner 106 GLENWOOD DR SOUTH, LIVERPOOL NY 13090
Craig Burton director, officer: President 104 DUNLAP DRIVE, DEWITT NY 13214

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