GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Controladora Vuela Compania de Aviacion SAB de CV (NYSE:VLRS) » Definitions » Return-on-Tangible-Equity

Controladora Vuela Compania de AviacionB de CV (Controladora Vuela Compania de AviacionB de CV) Return-on-Tangible-Equity : 54.39% (As of Mar. 2024)


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What is Controladora Vuela Compania de AviacionB de CV 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. Controladora Vuela Compania de AviacionB de CV's annualized net income for the quarter that ended in Mar. 2024 was $132 Mil. Controladora Vuela Compania de AviacionB de CV's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $243 Mil. Therefore, Controladora Vuela Compania de AviacionB de CV's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 54.39%.

The historical rank and industry rank for Controladora Vuela Compania de AviacionB de CV's Return-on-Tangible-Equity or its related term are showing as below:

VLRS' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -95.5   Med: 9.21   Max: 66.62
Current: 60.28

During the past 13 years, Controladora Vuela Compania de AviacionB de CV's highest Return-on-Tangible-Equity was 66.62%. The lowest was -95.50%. And the median was 9.21%.

VLRS's Return-on-Tangible-Equity is ranked better than
90.22% of 930 companies
in the Transportation industry
Industry Median: 9.94 vs VLRS: 60.28

Controladora Vuela Compania de AviacionB de CV Return-on-Tangible-Equity Historical Data

The historical data trend for Controladora Vuela Compania de AviacionB de CV'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.

Controladora Vuela Compania de AviacionB de CV Return-on-Tangible-Equity Chart

Controladora Vuela Compania de AviacionB de CV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 67.70 -92.69 49.39 -30.71 3.49

Controladora Vuela Compania de AviacionB de CV Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -151.87 15.43 -113.04 260.52 54.39

Competitive Comparison of Controladora Vuela Compania de AviacionB de CV's Return-on-Tangible-Equity

For the Airlines subindustry, Controladora Vuela Compania de AviacionB de CV'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.


Controladora Vuela Compania de AviacionB de CV's Return-on-Tangible-Equity Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Controladora Vuela Compania de AviacionB de CV's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Controladora Vuela Compania de AviacionB de CV's Return-on-Tangible-Equity falls into.



Controladora Vuela Compania de AviacionB de CV Return-on-Tangible-Equity Calculation

Controladora Vuela Compania de AviacionB de CV's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=7.819/( (222.012+226.375 )/ 2 )
=7.819/224.1935
=3.49 %

Controladora Vuela Compania de AviacionB de CV's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=132/( (226.375+259)/ 2 )
=132/242.6875
=54.39 %

* 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. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Controladora Vuela Compania de AviacionB de CV  (NYSE:VLRS) 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.


Controladora Vuela Compania de AviacionB de CV Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Controladora Vuela Compania de AviacionB de CV's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Controladora Vuela Compania de AviacionB de CV (Controladora Vuela Compania de AviacionB de CV) Business Description

Traded in Other Exchanges
Address
Av. Antonio Dovali Jaime Number 70, 13th Floor, Tower B, Colonia Zedec Santa Fe, Mexico, DF, MEX, 01210
Controladora Vuela Compania de Aviacion SAB de CV is a low-cost airline flying to Mexico, the United States, Central and South America. It currently operates up to 500 average daily flight segments on routes that connect 44 cities in Mexico as well as 22 cities in the United States, four in Central America and two in South America. It uses promotional fares to stimulate demand and the base fares are priced to compete with long-distance bus fares in Mexico. Revenues from the air transportation of passengers are recognized earlier when the service is provided or when the non-refundable ticket expires at the date of the scheduled travel. Non-passenger revenues include revenues generated from other non-passenger revenues and cargo services.