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. Lafarge's annualized net income for the quarter that ended in Jun. 2015 was €-1,524 Mil. Lafarge's average shareholder tangible equity for the quarter that ended in Jun. 2015 was €4,159 Mil. Therefore, Lafarge's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2015 was -36.64%.
The historical rank and industry rank for Lafarge's Return-on-Tangible-Equity or its related term are showing as below:
XPAR:LGNV'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -9.53 Med: 49.83 Max: 1522.79
Current: -9.53
During the past 13 years, Lafarge's highest Return-on-Tangible-Equity was 1,522.79%. The lowest was -9.53%. And the median was 49.83%.
XPAR:LGNV's Return-on-Tangible-Equity is not ranked
in the Building Materials industry.
Industry Median: 7.26
vs XPAR:LGNV: -9.53
Lafarge Return-on-Tangible-Equity Historical Data
The historical data trend for Lafarge'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.
Competitive Comparison of Lafarge's Return-on-Tangible-Equity
For the Building Materials subindustry, Lafarge'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.
Lafarge's Return-on-Tangible-Equity Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Lafarge's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lafarge's Return-on-Tangible-Equity falls into.
Lafarge Return-on-Tangible-Equity Calculation
Lafarge's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2014 is calculated as
* 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 (Jun. 2015) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
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.
Lafarge Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Lafarge's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Lafarge SA is a French limited liability company governed by French law and was founded in France in 1833 and was incorporated in 1884 under the name "J. et A. Pavin de Lafarge". The Company provides building materials. It is engaged in producing & selling cement, aggregates and ready-mix concrete, mostly under the "Lafarge" brand name. Its building products and solutions are used to construct and renovate homes, buildings and infrastructures. At year-end 2013, Company cement production operated, in 56 countries, 113 cement plants and 42 grinding plants, with an annual production capacity of 221 million tons. It also manages cement trading activities. The Company aggregates and concrete are used as raw materials for concrete, masonry, asphalt, and other industrial processes, and as base materials for roads, landï¬lls, and building. As of December 31, 2013, Company had approximately 437 production facilities for aggregates in 23 countries. The Company's Ready-mix concrete had 1,026 concrete plants in 33 countries as of December 31, 2014. The Company also produces asphalt in North America and the United Kingdom, and sells either as a stand-alone product, or in conjunction with contracted paving. The Company operates in Western Europe, North America, Central & Eastern Europe, Middle East & Africa, and Asia.
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