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Rockwood Holdings (FRA:R6H) Return-on-Tangible-Equity : 19.36% (As of Sep. 2014)


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What is Rockwood Holdings 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. Rockwood Holdings's annualized net income for the quarter that ended in Sep. 2014 was €267 Mil. Rockwood Holdings's average shareholder tangible equity for the quarter that ended in Sep. 2014 was €1,377 Mil. Therefore, Rockwood Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2014 was 19.36%.

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

FRA:R6H' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -66.47   Med: 85.25   Max: 110.76
Current: 32.59

During the past 12 years, Rockwood Holdings's highest Return-on-Tangible-Equity was 110.76%. The lowest was -66.47%. And the median was 85.25%.

FRA:R6H's Return-on-Tangible-Equity is not ranked
in the Chemicals industry.
Industry Median: 5.68 vs FRA:R6H: 32.59

Rockwood Holdings Return-on-Tangible-Equity Historical Data

The historical data trend for Rockwood Holdings'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.

Rockwood Holdings Return-on-Tangible-Equity Chart

Rockwood Holdings Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
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 85.25 109.34

Rockwood Holdings Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 441.40 107.58 -3.97 9.59 19.36

Competitive Comparison of Rockwood Holdings's Return-on-Tangible-Equity

For the Specialty Chemicals subindustry, Rockwood Holdings'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.


Rockwood Holdings's Return-on-Tangible-Equity Distribution in the Chemicals Industry

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

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



Rockwood Holdings Return-on-Tangible-Equity Calculation

Rockwood Holdings's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2013 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=1211.727/( (677.189+1539.278 )/ 2 )
=1211.727/1108.2335
=109.34 %

Rockwood Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2014 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2014 )  (Q: Jun. 2014 )(Q: Sep. 2014 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2014 )  (Q: Jun. 2014 )(Q: Sep. 2014 )
=266.632/( (1378.16+1376.469)/ 2 )
=266.632/1377.3145
=19.36 %

* 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. 2014) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Rockwood Holdings  (FRA:R6H) 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.


Rockwood Holdings Return-on-Tangible-Equity Related Terms

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


Rockwood Holdings (FRA:R6H) Business Description

Traded in Other Exchanges
N/A
Address
Rockwood Holdings Inc was incorporated in Delaware in September 2000. It is a developer, manufacturer and marketer of value-added specialty chemicals and materials used for industrial and commercial purposes. The Company operates through two business segments: Lithium and Surface Treatment. The Lithium segment operates under the Rockwood Lithium brand name and develops lithium chemicals for industries and end markets. It develops and manufactures basic lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and value-added lithium specialties and reagents, including butyllithium and lithium aluminum hydride. It operates lithium business along the following five business divisions reflecting its core end-markets: Lithium Salts; Special Salts; Butyllithium/Lithium Metal; Battery Products and Lithium Specialties. Lithium segment obtains lithium brine which it uses to produce lithium products through evaporation in the Salar de Atacama, Chile and Silver Peak, Nevada. Lithium's customers include Bayer CropScience (a division of Bayer AG), Syngenta AG, Umicore S.A., Samsung SDI Co. Ltd. and Royal DSM N.V. Surface Treatment segment operates under the Chemetall brand name and develops and manufactures metal surface treatment products and services for industries and end market. Surface Treatment's products are used for a variety of applications and serve the automotive, aerospace and general industrial markets, including steel and metal-working industries. The customers include ArcelorMittal, Daimler AG, European Aeronautic Defence and Space Company (EADS) N.V., Ford, Renault-Nissan and Volkswagen AG. The competitors in this segment includes: Dow Corning Corporation, Catalise Industria e Comercio de Metals Ltda and Nachmann S.r.I. The Company's operations are subject to regulation by the FDA with respect to certain products produced, marketed and sold by its Lithium segment, which includes pharmaceutical intermediates.

Rockwood Holdings (FRA:R6H) Headlines

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