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Embraer (Embraer) Return-on-Tangible-Equity : -97.57% (As of Mar. 2023)


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What is Embraer 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. Embraer's annualized net income for the quarter that ended in Mar. 2023 was $-283 Mil. Embraer's average shareholder tangible equity for the quarter that ended in Mar. 2023 was $290 Mil. Therefore, Embraer's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 was -97.57%.

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

ERJ' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -52.05   Med: -2.32   Max: 41.04
Current: -1.85

During the past 13 years, Embraer's highest Return-on-Tangible-Equity was 41.04%. The lowest was -52.05%. And the median was -2.32%.

ERJ's Return-on-Tangible-Equity is ranked worse than
75.52% of 290 companies
in the Aerospace & Defense industry
Industry Median: 7.695 vs ERJ: -1.85

Embraer Return-on-Tangible-Equity Historical Data

The historical data trend for Embraer'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.

Embraer Return-on-Tangible-Equity Chart

Embraer Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.10 -43.79 -7.62 -47.81 42.24

Embraer Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Dec23
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 67.46 -35.50 33.78 -97.57 -

Competitive Comparison of Embraer's Return-on-Tangible-Equity

For the Aerospace & Defense subindustry, Embraer'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.


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

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

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



Embraer Return-on-Tangible-Equity Calculation

Embraer's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=164/( (321+455.5 )/ 2 )
=164/388.25
=42.24 %

Embraer's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2023 )  (Q: Dec. 2022 )(Q: Mar. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2023 )  (Q: Dec. 2022 )(Q: Mar. 2023 )
=-283.2/( (321+259.5)/ 2 )
=-283.2/290.25
=-97.57 %

* 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. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Embraer  (NYSE:ERJ) 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.


Embraer Return-on-Tangible-Equity Related Terms

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


Embraer (Embraer) Business Description

Address
Avenida Dra. Ruth Cardoso, 8501, 30th Floor, Pinheiros, SP, BRA, 05425-070
Embraer SA based in Sao Paulo, Brazil, Embraer manufactures regional aircraft, business jets, and defense and security products. The company also offers a range of services to support its installed base of hardware. Its defense and security business is currently focused on developing the KC-390 military transport aircraft. The company also produces aircraft systems and structural components. It operates through the following segments: Commercial Aviation; Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from Commercial Aviation segment.