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RWE AG (XTER:RWE) Return-on-Tangible-Equity : 35.30% (As of Mar. 2024)


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What is RWE AG 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. RWE AG's annualized net income for the quarter that ended in Mar. 2024 was €7,688 Mil. RWE AG's average shareholder tangible equity for the quarter that ended in Mar. 2024 was €21,780 Mil. Therefore, RWE AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 35.30%.

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

XTER:RWE' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.64   Med: 12.99   Max: 86.56
Current: 7.89

During the past 13 years, RWE AG's highest Return-on-Tangible-Equity was 86.56%. The lowest was 6.64%. And the median was 12.99%.

XTER:RWE's Return-on-Tangible-Equity is ranked worse than
62.38% of 513 companies
in the Utilities - Regulated industry
Industry Median: 10.63 vs XTER:RWE: 7.89

RWE AG Return-on-Tangible-Equity Historical Data

The historical data trend for RWE 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.

* Premium members only.

RWE AG Return-on-Tangible-Equity Chart

RWE AG 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 86.56 8.60 6.66 17.37 6.64

RWE AG 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 28.82 7.04 31.27 -41.21 35.30

Competitive Comparison of RWE AG's Return-on-Tangible-Equity

For the Utilities - Diversified subindustry, RWE 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.


RWE AG's Return-on-Tangible-Equity Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, RWE AG's Return-on-Tangible-Equity distribution charts can be found below:

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



RWE AG Return-on-Tangible-Equity Calculation

RWE AG'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 )
=1450/( (21908+21782 )/ 2 )
=1450/21845
=6.64 %

RWE AG'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 )
=7688/( (21782+21778)/ 2 )
=7688/21780
=35.30 %

* 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.


RWE AG  (XTER:RWE) 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.


RWE AG Return-on-Tangible-Equity Related Terms

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


RWE AG (XTER:RWE) Business Description

Address
RWE Platz 1, Essen, NW, DEU, 45141
Since the deal with E.On, RWE is refocused on power generation, mostly in Europe. It owns 38 gigawatts of power generation capacity: 28% from lignite and hard coal plants, 37% from gas plants, 40% from renewables including pumped storage and batteries. Besides Germany, RWE's power plants are chiefly located in the United Kingdom, the Netherlands, Turkey, and the United States for many onshore wind farms.
Executives
Helle Valentin Supervisory Board
Ullrich Sierau Supervisory Board
Mag. Dr. H.c. Monika Kircher Supervisory Board
Dr. Hans-peter Keitel Supervisory Board
Dr. Markus Krebber Board of Directors
Dr. Michael Müller Board of Directors
Zvezdana Seeger Board of Directors
Dr. Werner Brandt Supervisory Board
Ute Gerbaulet Supervisory Board
Dr. Erhard Schipporeit Supervisory Board
Hauke Stars Supervisory Board
Dr. Andreas Wagner Supervisory Board
Dr. Rolf Martin Schmitz Board of Directors
Dagmar Mühlenfeld Supervisory Board
Peter Ottmann Supervisory Board

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