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. Bechtle AG's annualized net income for the quarter that ended in Mar. 2024 was €234 Mil. Bechtle AG's average shareholder tangible equity for the quarter that ended in Mar. 2024 was €927 Mil. Therefore, Bechtle AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 25.26%.
The historical rank and industry rank for Bechtle AG's Return-on-Tangible-Equity or its related term are showing as below:
XTER:BC8'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 20.82 Med: 29.36 Max: 37.3
Current: 29.81
During the past 13 years, Bechtle AG's highest Return-on-Tangible-Equity was 37.30%. The lowest was 20.82%. And the median was 29.36%.
XTER:BC8's Return-on-Tangible-Equity is ranked better than 76.46% of 2379
companies
in the Software industry
Industry Median: 7.82
vs XTER:BC8: 29.81
Bechtle AG Return-on-Tangible-Equity Historical Data
The historical data trend for Bechtle AG'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 Bechtle AG's Return-on-Tangible-Equity
For the Information Technology Services subindustry, Bechtle AG'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.
Bechtle AG's Return-on-Tangible-Equity Distribution in the Software Industry
For the Software industry and Technology sector, Bechtle AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Bechtle AG's Return-on-Tangible-Equity falls into.
Bechtle AG Return-on-Tangible-Equity Calculation
Bechtle AG's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 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 (Mar. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Bechtle AG (XTER:BC8) 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.
Bechtle AG Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Bechtle AG's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Bechtle AG is an information technology provider with operations in Germany, Austria, Switzerland, and other European countries. The company's customers are mainly in the industrial, trade, financial, and public sectors. Bechtle operates through two segments: IT System House and Managed Services, and IT E-commerce. The IT System House and Managed Services segment consist of IT strategy consulting, hardware and software sales, project planning and roll-out, system integrations, IT services and training, and client management, among others. The IT E-commerce segment includes e-procurement services, software solutions, and product marketing through the Internet and telemarketing.
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