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Aveo Healthcare (ASX:AEH) Return-on-Tangible-Equity : -2.90% (As of Dec. 2013)


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What is Aveo Healthcare 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. Aveo Healthcare's annualized net income for the quarter that ended in Dec. 2013 was A$-5.58 Mil. Aveo Healthcare's average shareholder tangible equity for the quarter that ended in Dec. 2013 was A$191.96 Mil. Therefore, Aveo Healthcare's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2013 was -2.90%.

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

ASX:AEH's Return-on-Tangible-Equity is not ranked *
in the Real Estate industry.
Industry Median: 2.94
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Aveo Healthcare Return-on-Tangible-Equity Historical Data

The historical data trend for Aveo Healthcare'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.

Aveo Healthcare Return-on-Tangible-Equity Chart

Aveo Healthcare Annual Data
Trend Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.85 8.56 15.40 -19.39 -1.66

Aveo Healthcare Semi-Annual Data
Jun04 Dec04 Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13
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 11.02 -49.58 -4.72 1.43 -2.90

Competitive Comparison of Aveo Healthcare's Return-on-Tangible-Equity

For the Real Estate Services subindustry, Aveo Healthcare'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.


Aveo Healthcare's Return-on-Tangible-Equity Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Aveo Healthcare's Return-on-Tangible-Equity distribution charts can be found below:

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



Aveo Healthcare Return-on-Tangible-Equity Calculation

Aveo Healthcare's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2013 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jun. 2013 )  (A: Jun. 2012 )(A: Jun. 2013 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jun. 2013 )  (A: Jun. 2012 )(A: Jun. 2013 )
=-3.264/( (200.447+192.827 )/ 2 )
=-3.264/196.637
=-1.66 %

Aveo Healthcare's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2013 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2013 )  (Q: Jun. 2013 )(Q: Dec. 2013 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2013 )  (Q: Jun. 2013 )(Q: Dec. 2013 )
=-5.576/( (192.827+191.094)/ 2 )
=-5.576/191.9605
=-2.90 %

* 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. 2013) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Aveo Healthcare  (ASX:AEH) 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.


Aveo Healthcare Return-on-Tangible-Equity Related Terms

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


Aveo Healthcare (ASX:AEH) Business Description

Traded in Other Exchanges
N/A
Address
Aveo Healthcare Ltd provides retirement communities in South-East Queensland. The Company's healthcare's portfolio comprises five retirement villages, located in Albany Creet, Clayfield, Cleveland, Durack and Taringa.

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