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TLN (Talen Energy) Return-on-Tangible-Equity : -42.07% (As of Mar. 2025)


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What is Talen Energy 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. Talen Energy's annualized net income for the quarter that ended in Mar. 2025 was $-540 Mil. Talen Energy's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $1,284 Mil. Therefore, Talen Energy's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was -42.07%.

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

TLN' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -32.28   Med: 2.22   Max: 51.93
Current: 32.22

During the past 8 years, Talen Energy's highest Return-on-Tangible-Equity was 51.93%. The lowest was -32.28%. And the median was 2.22%.

TLN's Return-on-Tangible-Equity is ranked better than
88.7% of 416 companies
in the Utilities - Independent Power Producers industry
Industry Median: 6.59 vs TLN: 32.22

Talen Energy Return-on-Tangible-Equity Historical Data

The historical data trend for Talen Energy'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.

Talen Energy Return-on-Tangible-Equity Chart

Talen Energy Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial 10.22 -9.01 -32.28 - 51.93

Talen Energy Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 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 47.86 72.35 27.45 17.38 -42.07

Competitive Comparison of Talen Energy's Return-on-Tangible-Equity

For the Utilities - Independent Power Producers subindustry, Talen Energy'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.


Talen Energy's Return-on-Tangible-Equity Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Talen Energy's Return-on-Tangible-Equity distribution charts can be found below:

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


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Talen Energy Return-on-Tangible-Equity Calculation

Talen Energy'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 )
=998/( (2457+1387 )/ 2 )
=998/1922
=51.93 %

Talen Energy'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 )
=-540/( (1387+1180)/ 2 )
=-540/1283.5
=-42.07 %

* 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.


Talen Energy  (NAS:TLN) 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.


Talen Energy Return-on-Tangible-Equity Related Terms

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


Talen Energy Business Description

Traded in Other Exchanges
N/A
Address
2929 Allen Parkway, Suite 2200, Houston, TX, USA, 77019
Talen Energy Corp is an independent power producer and energy infrastructure company. The company owns and operates approximately 10.7 gigawatts of power infrastructure in the United States. The group produces and sells electricity, capacity, and ancillary services into wholesale U.S. power markets, including PJM and WECC, with its generation fleet located in the Mid-Atlantic and Montana.