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Adyen NV (XAMS:ADYEN) Return-on-Tangible-Asset : 9.68% (As of Dec. 2023)


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What is Adyen NV Return-on-Tangible-Asset?

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Adyen NV's annualized Net Income for the quarter that ended in Dec. 2023 was €832 Mil. Adyen NV's average total tangible assets for the quarter that ended in Dec. 2023 was €8,596 Mil. Therefore, Adyen NV's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was 9.68%.

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

XAMS:ADYEN' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.23   Med: 8.28   Max: 10.51
Current: 8.45

During the past 10 years, Adyen NV's highest Return-on-Tangible-Asset was 10.51%. The lowest was 2.23%. And the median was 8.28%.

XAMS:ADYEN's Return-on-Tangible-Asset is ranked better than
74.04% of 2824 companies
in the Software industry
Industry Median: 1.22 vs XAMS:ADYEN: 8.45

Adyen NV Return-on-Tangible-Asset Historical Data

The historical data trend for Adyen NV's Return-on-Tangible-Asset 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.

Adyen NV Return-on-Tangible-Asset Chart

Adyen NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.51 7.73 9.48 8.43 8.13

Adyen NV Semi-Annual Data
Dec14 Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Return-on-Tangible-Asset 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 10.24 9.10 7.91 7.40 9.68

Competitive Comparison of Adyen NV's Return-on-Tangible-Asset

For the Software - Infrastructure subindustry, Adyen NV's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.


Adyen NV's Return-on-Tangible-Asset Distribution in the Software Industry

For the Software industry and Technology sector, Adyen NV's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Adyen NV's Return-on-Tangible-Asset falls into.



Adyen NV Return-on-Tangible-Asset Calculation

Adyen NV's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=698.322/( (7612.148+9559.614)/ 2 )
=698.322/8585.881
=8.13 %

Adyen NV's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=832.298/( (7632.365+9559.614)/ 2 )
=832.298/8595.9895
=9.68 %

* 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-Asset, the net income of the last fiscal year and the average total tangible assets 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.


Adyen NV  (XAMS:ADYEN) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Adyen NV Return-on-Tangible-Asset Related Terms

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Adyen NV (XAMS:ADYEN) Business Description

Industry
Address
Simon Carmiggeltstraat 6-50, PO Box 10095, Amsterdam, NLD, 1011 DJ
Adyen is a payment company that provides merchants with a single platform to accept e-commerce, mobile, and point-of-sale payments in multiple countries using various payment schemes and methodologies. Adyen started out providing only gateway and payment processing services to merchants but soon expanded into merchant acquiring services as well. Adyen obtained a banking licence to improve settlement of merchant accounts.

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