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. Timken India's annualized net income for the quarter that ended in Mar. 2024 was ₹5,657 Mil. Timken India's average shareholder tangible equity for the quarter that ended in Mar. 2024 was ₹21,910 Mil. Therefore, Timken India's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 25.82%.
The historical rank and industry rank for Timken India's Return-on-Tangible-Equity or its related term are showing as below:
BOM:522113'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.87 Med: 19.36 Max: 28.24
Current: 20.02
During the past 13 years, Timken India's highest Return-on-Tangible-Equity was 28.24%. The lowest was 12.87%. And the median was 19.36%.
BOM:522113's Return-on-Tangible-Equity is ranked better than 83.4% of 2921
companies
in the Industrial Products industry
Industry Median: 7.56
vs BOM:522113: 20.02
Timken India Return-on-Tangible-Equity Historical Data
The historical data trend for Timken India'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.
Competitive Comparison of Timken India's Return-on-Tangible-Equity
For the Tools & Accessories subindustry, Timken India'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.
Timken India's Return-on-Tangible-Equity Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Timken India's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Timken India's Return-on-Tangible-Equity falls into.
Timken India Return-on-Tangible-Equity Calculation
Timken India's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2024 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-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.
Timken India (BOM:522113) 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.
Timken India Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Timken India's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Timken India Ltd is an India-based company that manufactures, distributes, and services bearings and related components. The company also provides repair and maintenance services for industrial gearboxes. The company's products, which primarily comprise engineered bearings and mechanical power transmission products, are marketed under brand names including Timken, Philadelphia Gear, Carlisle, Drives, Lovejoy, R+L, and Interlube. The company's clients come from sectors including defense, mining, metals, and civil aerospace. Timken India generates the majority of its sales from the Indian domestic market.
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