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Vertu Motors (STU:V2N) Return-on-Tangible-Equity : 2.94% (As of Feb. 2024)


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What is Vertu Motors 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. Vertu Motors's annualized net income for the quarter that ended in Feb. 2024 was €8 Mil. Vertu Motors's average shareholder tangible equity for the quarter that ended in Feb. 2024 was €262 Mil. Therefore, Vertu Motors's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2024 was 2.94%.

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

STU:V2N' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.85   Med: 12.94   Max: 29.89
Current: 11.7

During the past 13 years, Vertu Motors's highest Return-on-Tangible-Equity was 29.89%. The lowest was 1.85%. And the median was 12.94%.

STU:V2N's Return-on-Tangible-Equity is ranked better than
61.27% of 1242 companies
in the Vehicles & Parts industry
Industry Median: 8.295 vs STU:V2N: 11.70

Vertu Motors Return-on-Tangible-Equity Historical Data

The historical data trend for Vertu Motors'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.

Vertu Motors Return-on-Tangible-Equity Chart

Vertu Motors Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.88 9.53 30.40 11.34 12.08

Vertu Motors Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 20.60 18.67 3.53 20.84 2.94

Competitive Comparison of Vertu Motors's Return-on-Tangible-Equity

For the Auto & Truck Dealerships subindustry, Vertu Motors'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.


Vertu Motors's Return-on-Tangible-Equity Distribution in the Vehicles & Parts Industry

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

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



Vertu Motors Return-on-Tangible-Equity Calculation

Vertu Motors's annualized Return-on-Tangible-Equity for the fiscal year that ended in Feb. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Feb. 2024 )  (A: Feb. 2023 )(A: Feb. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Feb. 2024 )  (A: Feb. 2023 )(A: Feb. 2024 )
=30.096/( (238.025+260.204 )/ 2 )
=30.096/249.1145
=12.08 %

Vertu Motors's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2024 )  (Q: Aug. 2023 )(Q: Feb. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2024 )  (Q: Aug. 2023 )(Q: Feb. 2024 )
=7.708/( (263.333+260.204)/ 2 )
=7.708/261.7685
=2.94 %

* 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 two times the semi-annual (Feb. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Vertu Motors  (STU:V2N) 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.


Vertu Motors Return-on-Tangible-Equity Related Terms

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


Vertu Motors (STU:V2N) Business Description

Traded in Other Exchanges
Address
Vertu House, 5th Avenue Business Park, Team Valley, Gateshead, Tyne and Wear, GBR, NE11 0XA
Vertu Motors PLC is an automotive retailer in the United Kingdom. The business activity of the group includes selling new cars, motorcycles, commercial vehicles, and used vehicles, together with after-sale services. It operates through various franchise dealerships, such as Volkswagen, Land Rover, Audi, Mercedes-Benz, Jaguar, Kia, Toyota, and many others. The company generates maximum revenue from Used cars.

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