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. Sole Elite Group's annualized net income for the quarter that ended in Dec. 2014 was $28.79 Mil. Sole Elite Group's average shareholder tangible equity for the quarter that ended in Dec. 2014 was $26.94 Mil. Therefore, Sole Elite Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2014 was 106.86%.
The historical rank and industry rank for Sole Elite Group's Return-on-Tangible-Equity or its related term are showing as below:
SOLE's Return-on-Tangible-Equity is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 4.47 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Sole Elite Group (NAS:SOLE) 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.
Sole Elite Group Return-on-Tangible-Equity Related Terms
Sole Elite Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sole Elite Group'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.
Sole Elite Group Return-on-Tangible-Equity Chart
Sole Elite Group Annual Data
Trend
Dec12
Dec13
Dec14
Return-on-Tangible-Equity
70.60
87.23
106.86
Sole Elite Group Semi-Annual Data
Dec12
Dec13
Dec14
Return-on-Tangible-Equity
70.60
87.23
106.86
SOLE vs FORD, JCLY, TLF: Return-on-Tangible-Equity Comparison
For the Footwear & Accessories subindustry, Sole Elite Group'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.
Sole Elite Group Return-on-Tangible-Equity vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sole Elite Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sole Elite Group'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 one times the annual (Dec. 2014) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 106.86% mean?
Sole Elite Group (SOLE) has a Return-on-Tangible-Equity of 106.86% as of Dec. 2014. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sole Elite Group and its competitors.
Is Sole Elite Group's Return-on-Tangible-Equity too high?
Sole Elite Group's current Return-on-Tangible-Equity is 106.86%. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Equity is 4.47. Sole Elite Group's value of 106.86% is 2290.6% above this industry median.
How does Sole Elite Group's Return-on-Tangible-Equity compare to FORD and JCLY?
Sole Elite Group's Return-on-Tangible-Equity of 106.86% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Return-on-Tangible-Equity is 4.47. Sole Elite Group's value of 106.86% is 2290.6% above this benchmark. 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 Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Equity among Manufacturing - Apparel & Accessories companies is 4.47, based on 1,017 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. Sole Elite Group's current Return-on-Tangible-Equity of 106.86% is 2290.6% above the industry median. 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 Sole Elite Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Equity is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sole Elite Group's current Return-on-Tangible-Equity is 106.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sole Elite Group stock overvalued right now?
Sole Elite Group (SOLE) has a current Return-on-Tangible-Equity of 106.86%. The current Return-on-Tangible-Equity is 106.86% and 2290.6% above the Manufacturing - Apparel & Accessories industry median of 4.47. 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 Sole Elite Group (SOLE), the current Return-on-Tangible-Equity is 106.86% as of Dec. 2014. 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.
Sole Elite Group Ltd was formed on December 10, 2014. The Company, through its subsidiaries, is engaged in the business of designing, producing and selling shoe soles. It has four product lines: RB soles, MD soles, single color IP sole and dual color IP sole products. Its manufacturing facilities in China are located in Jinjiang, Fujian Province, which has a high concentration of footwear industry participants. Sports shoe soles are made of various materials, such as EVA, RB, PU, TPE, and TPU. The core materials of shoe soles are EVA and RB. The principal raw materials used in the production of its products are EVA, rubber, TPU, color dyes and other chemical additives. Its raw materials are sourced suppliers in the PRC located in Quanzhou, Fujian Province, which is close to its production facilities. It sells products to sportswear manufacturers that are based in China, including a number of companies in the athletic wear market, including Li-Ning, 361º, ERKE and Anta. It also sells products to OEM footwear companies for international athletic brands, such as Taiwan Ching Luh, which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour in Asia. Customers use its products as components in the athletic footwear that it sells to end consumers, athletic wear companies and shoe distributors. Its customer includes Fujian Ching Luh Shoes Co., Ltd., which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour. Its direct competition comes from various shoe sole production companies in China, such as Multi Sports Holding Ltd., Victory New Materials Limited Company, Fenghua SoleTech AG, Tai Ya Shoes Co., Ltd., Mao Tai (Fujian) Soles Co., Ltd. and Xing Quan International Sports Holdings Limited. It currently hold four PRC patents. The Company is subject to all China's national and local laws and regulations, including those related to environmental protection, foreign currency, property ownership and taxation.
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