Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. BAE Systems's annualizedNet Income for the quarter that ended in Dec. 2023 was $2,258 Mil. BAE Systems's average total tangible assets for the quarter that ended in Dec. 2023 was $24,524 Mil. Therefore, BAE Systems's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was 9.21%.
The historical rank and industry rank for BAE Systems's Return-on-Tangible-Asset or its related term are showing as below:
BAESY'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.79 Med: 8.86 Max: 11.27
Current: 9.67
During the past 13 years, BAE Systems's highest Return-on-Tangible-Asset was 11.27%. The lowest was 6.79%. And the median was 8.86%.
BAESY's Return-on-Tangible-Asset is ranked better than 86.54% of 312
companies
in the Aerospace & Defense industry
Industry Median: 2.76
vs BAESY: 9.67
BAE Systems Return-on-Tangible-Asset Historical Data
The historical data trend for BAE Systems's Return-on-Tangible-Asset 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 BAE Systems's Return-on-Tangible-Asset
For the Aerospace & Defense subindustry, BAE Systems's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
BAE Systems's Return-on-Tangible-Asset Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where BAE Systems's Return-on-Tangible-Asset falls into.
BAE Systems Return-on-Tangible-Asset Calculation
BAE Systems's annualized Return-on-Tangible-Asset 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-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2023) net income data.
BAE Systems (OTCPK:BAESY) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
BAE Systems Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of BAE Systems's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the U.S. Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's U.S.- and U.K.-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the U.S. government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the U.S. Defense Department; the air segment includes BAE's share of U.S. and European air programs as well as its businesses in Saudi Arabia and Australia; and the maritime segment comprises U.K. land- and marine-based activities.
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