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EMC (EMC) Return-on-Tangible-Equity : 85.79% (As of Jun. 2016)


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What is EMC 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. EMC's annualized net income for the quarter that ended in Jun. 2016 was $2,324 Mil. EMC's average shareholder tangible equity for the quarter that ended in Jun. 2016 was $2,709 Mil. Therefore, EMC's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2016 was 85.79%.

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

EMC's Return-on-Tangible-Equity is not ranked *
in the Hardware industry.
Industry Median: 5.56
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

EMC Return-on-Tangible-Equity Historical Data

The historical data trend for EMC'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.

EMC Return-on-Tangible-Equity Chart

EMC Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 52.37 46.04 45.93 55.76 71.87

EMC Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 93.36 125.45 204.04 49.68 85.79

Competitive Comparison of EMC's Return-on-Tangible-Equity

For the Computer Hardware subindustry, EMC'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.


EMC's Return-on-Tangible-Equity Distribution in the Hardware Industry

For the Hardware industry and Technology sector, EMC's Return-on-Tangible-Equity distribution charts can be found below:

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



EMC Return-on-Tangible-Equity Calculation

EMC's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2015 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2015 )  (A: Dec. 2014 )(A: Dec. 2015 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2015 )  (A: Dec. 2014 )(A: Dec. 2015 )
=1990/( (3637+1901 )/ 2 )
=1990/2769
=71.87 %

EMC's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2016 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2016 )  (Q: Mar. 2016 )(Q: Jun. 2016 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2016 )  (Q: Mar. 2016 )(Q: Jun. 2016 )
=2324/( (2415+3003)/ 2 )
=2324/2709
=85.79 %

* 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. 2016) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


EMC  (NYSE:EMC) 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.


EMC Return-on-Tangible-Equity Related Terms

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


EMC (EMC) Business Description

Industry
Traded in Other Exchanges
N/A
Address
EMC Corp is a Massachusetts corporation, incorporated in 1979. The Company together with its subsidiaries supports the businesses and service providers to transform information technology (IT) operations to an as a service model (ITaaS). The Company operates in three segments: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. The Company's information infrastructure provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, while at the same time improving business agility, lowering cost and increasing competitive advantage. VMware Virtual Infrastructure provides virtualization infrastructure solutions. Pivotal provides application and data infrastructure software, agile development services and data science consulting. The Company offers a comprehensive portfolio of enterprise storage systems and software - including high-end EMC VMAX and mid-tier EMC VNX unified storage and a portfolio of backup products that support enterprise application workloads. The Company's two additional storage families, EMC Isilon and EMC Atmos, are specifically designed to handle vast quantities of unstructured data. EMC supports a broad range of customers, including service providers, around the world - in every industry, in both public and private sectors, and of sizes ranging from the Fortune 500 to small business and individual consumers. The Company markets its products through direct sales and through multiple distribution channels. It has a direct sales presence throughout North America, Latin America, Europe, the Middle East, South Africa and the Asia Pacific region. The Company also has agreements in place with many partners, including value-added resellers and distributors, cloud service providers, systems integrators, outsourcers, Independent Software Vendors ("ISVs"), and Original Equipment Manufacturers ("OEMs"). The Company competes with many companies in the markets it serve, including companies that offer IT products and services and others that offer specific information storage, protection, security, management and intelligence, data analytics or virtualization products or services.
Executives
Laura Sen director ONE MERCER ROAD, P.O. BOX 9601, NATICK MA 01760-9601
John R Egan director 176 SOUTH ST., HOPKINTON MA 01748
Donald J Carty director C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244
Judith A Miscik director 300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265
William D Green director C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601
William F Scannell officer: President,Global Sales/Cust Op EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Randolph L Cowen director 176 SOUTH STREET HOPKINTON MA 01748
Howard D Elias officer: President & COO, Glob Ent Srvs C/O EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Paul T Dacier officer: EVP & General Counsel EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Erin Mcsweeney officer: EVP, Human Resources EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Teuber William J Jr officer: Vice Chairman EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
James S Distasio director C/O EVERSOURCE ENERGY, 300 CADWELL DRIVE, BOSTON MA 01104
Paul Sagan director AKAMAI TECHNOLOGIES INC, 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Jeremy Burton officer: President, Prod & Marketing C/O SNOWFLAKE INC., 106 EAST BABCOCK STREET SUITE 3A, BOZEMAN MT 59715
David I Goulden officer: CEO, EMCII 176 SOUTH STREET, HOPKINTON MA 01748

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