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Strathcona Resources (TSX:SCR) Return-on-Tangible-Equity : 13.92% (As of Mar. 2025)


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What is Strathcona Resources 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. Strathcona Resources's annualized net income for the quarter that ended in Mar. 2025 was C$821 Mil. Strathcona Resources's average shareholder tangible equity for the quarter that ended in Mar. 2025 was C$5,898 Mil. Therefore, Strathcona Resources's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 13.92%.

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

TSX:SCR' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.83   Med: 12.32   Max: 32.32
Current: 12.35

During the past 3 years, Strathcona Resources's highest Return-on-Tangible-Equity was 32.32%. The lowest was 10.83%. And the median was 12.32%.

TSX:SCR's Return-on-Tangible-Equity is ranked better than
65.24% of 981 companies
in the Oil & Gas industry
Industry Median: 6.86 vs TSX:SCR: 12.35

Strathcona Resources Return-on-Tangible-Equity Historical Data

The historical data trend for Strathcona Resources'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.

Strathcona Resources Return-on-Tangible-Equity Chart

Strathcona Resources Annual Data
Trend Dec22 Dec23 Dec24
Return-on-Tangible-Equity
32.32 12.32 10.83

Strathcona Resources Quarterly Data
Sep22 Dec22 Mar23 Jun23 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 7.48 16.40 13.14 6.06 13.92

Competitive Comparison of Strathcona Resources's Return-on-Tangible-Equity

For the Oil & Gas E&P subindustry, Strathcona Resources'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.


Strathcona Resources's Return-on-Tangible-Equity Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Strathcona Resources's Return-on-Tangible-Equity distribution charts can be found below:

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


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Strathcona Resources Return-on-Tangible-Equity Calculation

Strathcona Resources'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 )
=603.7/( (5327.1+5823.7 )/ 2 )
=603.7/5575.4
=10.83 %

Strathcona Resources'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 )
=821.2/( (5823.7+5973)/ 2 )
=821.2/5898.35
=13.92 %

* 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.


Strathcona Resources  (TSX:SCR) 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.


Strathcona Resources Return-on-Tangible-Equity Related Terms

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


Strathcona Resources Business Description

Traded in Other Exchanges
Address
421-7th Avenue S.W, Suite 1900, Calgary, AB, CAN, T2P4K9
Strathcona Resources Ltd is an energy company, it is a consolidator and developer of oil and gas assets. It has three segments Cold Lake Thermal, which includes three producing assets in the Cold Lake region of Northern Alberta: Lindbergh, Orion, and Tucker; Lloydminster Heavy Oil which has multiple large oil-in-place reservoirs accessed through enhanced oil recovery techniques and thermal steam-assisted gravity drainage (SAGD), located in Southwest Saskatchewan; and Montney which includes assets in the Northwest Alberta Kakwa and Grande Prairie regions and the Northeast British Columbia Groundbirch region.