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. BHP Group's annualized net income for the quarter that ended in Dec. 2023 was $1,854 Mil. BHP Group's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $40,611 Mil. Therefore, BHP Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 4.57%.
The historical rank and industry rank for BHP Group's Return-on-Tangible-Equity or its related term are showing as below:
BHP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -12.09 Med: 17.6 Max: 71.22
Current: 18.13
During the past 13 years, BHP Group's highest Return-on-Tangible-Equity was 71.22%. The lowest was -12.09%. And the median was 17.60%.
BHP's Return-on-Tangible-Equity is ranked better than 94.01% of 2471
companies
in the Metals & Mining industry
Industry Median: -16.39
vs BHP: 18.13
BHP Group Return-on-Tangible-Equity Historical Data
The historical data trend for BHP Group'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 BHP Group's Return-on-Tangible-Equity
For the Other Industrial Metals & Mining subindustry, BHP Group'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.
BHP Group's Return-on-Tangible-Equity Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, BHP Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where BHP Group's Return-on-Tangible-Equity falls into.
BHP Group Return-on-Tangible-Equity Calculation
BHP Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2023 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 two times the semi-annual (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
BHP Group (NYSE:BHP) 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.
BHP Group Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of BHP Group's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
BHP is a global diversified miner mainly supplying iron ore and copper. The merger of BHP Limited and Billiton PLC created the present-day BHP Group. The dual listed structure from the 2001 BHP and Billiton merger was collapsed in 2022. Major assets include Pilbara iron ore and Escondida copper. Onshore U.S. oil and gas assets were sold in 2018 and the remaining Petroleum assets were spun off and merged with Woodside in 2022, with BHP vesting the Woodside shares it received to BHP shareholders. BHP is growing its nickel business to supply more battery grade nickel and is also entering the potash market through the development of its Jansen mine in Canada. It also purchased copper miner Oz Minerals in fiscal 2023.
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