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Holcim (Holcim) Return-on-Tangible-Equity : 36.50% (As of Dec. 2023)


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What is Holcim 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. Holcim's annualized net income for the quarter that ended in Dec. 2023 was $4,161 Mil. Holcim's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $11,400 Mil. Therefore, Holcim's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 36.50%.

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

HCMLF' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -13.01   Med: 13.6   Max: 27.54
Current: 27.54

During the past 13 years, Holcim's highest Return-on-Tangible-Equity was 27.54%. The lowest was -13.01%. And the median was 13.60%.

HCMLF's Return-on-Tangible-Equity is ranked better than
89.87% of 375 companies
in the Building Materials industry
Industry Median: 6.94 vs HCMLF: 27.54

Holcim Return-on-Tangible-Equity Historical Data

The historical data trend for Holcim'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.

Holcim Return-on-Tangible-Equity Chart

Holcim 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 16.74 13.03 18.14 25.79 27.12

Holcim Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 25.31 19.70 36.82 22.31 36.50

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

For the Building Materials subindustry, Holcim'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.


Holcim's Return-on-Tangible-Equity Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Holcim's Return-on-Tangible-Equity distribution charts can be found below:

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



Holcim Return-on-Tangible-Equity Calculation

Holcim'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 )
=3538.39/( (14202.447+11889.454 )/ 2 )
=3538.39/13045.9505
=27.12 %

Holcim's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=4160.5/( (10909.596+11889.454)/ 2 )
=4160.5/11399.525
=36.50 %

* 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 two times the semi-annual (Dec. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Holcim  (OTCPK:HCMLF) 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.


Holcim Return-on-Tangible-Equity Related Terms

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


Holcim (Holcim) Business Description

Address
Grafenauweg 10, Zug, CHE, CH-6300
Holcim is a global manufacturer of construction materials such as cement, aggregates, and concrete. The company is the result of a merger between Lafarge and Holcim, completed in 2015, which created a leader in the building materials sector. Holcim has a global presence, operating in over 70 countries with 72,000 employees.

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