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Rockwell Collins (Rockwell Collins) Return-on-Tangible-Equity : Negative Tangible Equity% (As of Sep. 2018)


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What is Rockwell Collins 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. Rockwell Collins's annualized net income for the quarter that ended in Sep. 2018 was $960 Mil. Rockwell Collins's average shareholder tangible equity for the quarter that ended in Sep. 2018 was $-4,208 Mil. Therefore, Rockwell Collins's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2018 was Negative Tangible Equity%.

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

COL's Return-on-Tangible-Equity is not ranked *
in the Aerospace & Defense industry.
Industry Median: 7.635
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Rockwell Collins Return-on-Tangible-Equity Historical Data

The historical data trend for Rockwell Collins'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.

Rockwell Collins Return-on-Tangible-Equity Chart

Rockwell Collins Annual Data
Trend Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Rockwell Collins Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Competitive Comparison of Rockwell Collins's Return-on-Tangible-Equity

For the Aerospace & Defense subindustry, Rockwell Collins'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.


Rockwell Collins's Return-on-Tangible-Equity Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Rockwell Collins's Return-on-Tangible-Equity distribution charts can be found below:

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



Rockwell Collins Return-on-Tangible-Equity Calculation

Rockwell Collins's annualized Return-on-Tangible-Equity for the fiscal year that ended in Sep. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Sep. 2018 )  (A: Sep. 2017 )(A: Sep. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Sep. 2018 )  (A: Sep. 2017 )(A: Sep. 2018 )
=1032/( (-5244+-4192 )/ 2 )
=1032/-4718
=Negative Tangible Equity %

Rockwell Collins's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2018 )  (Q: Jun. 2018 )(Q: Sep. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2018 )  (Q: Jun. 2018 )(Q: Sep. 2018 )
=960/( (-4223+-4192)/ 2 )
=960/-4207.5
=Negative Tangible Equity %

* 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 (Sep. 2018) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Rockwell Collins  (NYSE:COL) 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.


Rockwell Collins Return-on-Tangible-Equity Related Terms

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


Rockwell Collins (Rockwell Collins) Business Description

Traded in Other Exchanges
N/A
Address
Rockwell Collins Inc develops communications and aviation electronics for commercial and military customers worldwide. It employs over 20,000 people. Competencies include communications, navigation, automated flight control, displays, simulation and training, integrated electronics, and information systems. The firm sells to governments, airlines, and aircraft manufacturers, while providing aftermarket services for many of its products. The company recently closed its acquisition of B/E Aerospace, an aircraft seat and cabin manufacturer.
Executives
John A Edwardson director P O BOX 66100-WHQLD, CHICAGO IL 60666
Robert Kelly Ortberg director, officer: Chairman, Pres & CEO 870 WINTER STREET, WALTHAM MA 02451
Patrick E Allen officer: Sr. VP and CFO 400 COLLINS ROAD NE, CEDAR RAPIDS IA 52498
David Lilley director
Ralph E Eberhart director 909 N. WASHINGTON STREET, ALEXANDRIA VA 22314
Richard Hamermesh director C/O BE AEROSPACE, INC., 1400 CORPORATE CENTER WAY, WELLINGTON FL 33414
Jeffrey L Turner director SPIRIT AEROSYSTEMS HOLDINGS, INC., 3801 SOUTH OLIVER, WICHITA KS 67210
Cheryl L Shavers director 400 COLLINS ROAD NE, M/S 124-323, CEDAR RAPIDS IA 52498
Andrew J Policano director
Robert J Perna officer: Sr. VP, Gnrl Counsel & Secy 1151 MAPLEWOOD DRIVE, ITASCA IL 60143
John T Whates director 1400 CORPORATE CENTER WAY, WELLINGTON FL 33414
Besong John Paul E officer: Sr. VP, eBusiness 400 COLLINS ROAD NE M/S 124-003, CEDAR RAPIDS IA 52498001
Clayton M Jones director 400 COLLINS ROAD NE, CEDAR RAPIDS IA 52498
Donald R Beall director 5 SAN JOAQUIN PLAZA, SUITE 320, NEWPORT BEACH CA 92660
Toot Joseph F Jr director 400 COLLINS ROAD NE, M/S 124-323, CEDAR RAPIDS IA 52498

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