GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » The Travelers Companies Inc (NYSE:TRV) » Definitions » Return-on-Tangible-Equity

The Travelers (The Travelers) Return-on-Tangible-Equity : 21.88% (As of Mar. 2024)


View and export this data going back to 1988. Start your Free Trial

What is The Travelers 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. The Travelers's annualized net income for the quarter that ended in Mar. 2024 was $4,492 Mil. The Travelers's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $20,532 Mil. Therefore, The Travelers's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 21.88%.

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

TRV' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.59   Med: 14.19   Max: 17.69
Current: 16.84

During the past 13 years, The Travelers's highest Return-on-Tangible-Equity was 17.69%. The lowest was 10.59%. And the median was 14.19%.

TRV's Return-on-Tangible-Equity is ranked better than
64.02% of 478 companies
in the Insurance industry
Industry Median: 11.77 vs TRV: 16.84

The Travelers Return-on-Tangible-Equity Historical Data

The historical data trend for The Travelers'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.

The Travelers Return-on-Tangible-Equity Chart

The Travelers 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 13.02 11.59 14.80 13.57 15.75

The Travelers Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 21.59 -0.31 9.69 35.72 21.88

Competitive Comparison of The Travelers's Return-on-Tangible-Equity

For the Insurance - Property & Casualty subindustry, The Travelers'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.


The Travelers's Return-on-Tangible-Equity Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, The Travelers's Return-on-Tangible-Equity distribution charts can be found below:

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



The Travelers Return-on-Tangible-Equity Calculation

The Travelers'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 )
=2991/( (17321+20668 )/ 2 )
=2991/18994.5
=15.75 %

The Travelers's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=4492/( (20668+20395)/ 2 )
=4492/20531.5
=21.88 %

* 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. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


The Travelers  (NYSE:TRV) 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.


The Travelers Return-on-Tangible-Equity Related Terms

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


The Travelers (The Travelers) Business Description

Address
485 Lexington Avenue, New York, NY, USA, 10017
Travelers offers a broad product range and participates in both commercial and personal insurance lines. Its commercial operations offer a variety of coverage types for companies of any size but concentrate on serving midsize businesses. Its personal lines are roughly evenly split between auto and homeowners insurance. Travelers derives 6% of its premiums from foreign markets.
Executives
Maria Olivo officer: Executive Vice President THE TRAVELERS COMPANIES, INC., 485 LEXINGTON AVENUE, NEW YORK NY 10017
William H Heyman officer: Vice Chairman & CIO THE TRAVELERS COMPANIES INC, 385 WASHINGTON STREET, ST PAUL MN 55102
Andy F Bessette officer: EVP and Chief Admin Officer THE TRAVELERS COMPANIES, INC., 385 WASHINGTON STREET, ST. PAUL MN 55102
Michael Frederick Klein officer: EVP & President, Personal Ins. 385 WASHINGTON STREET, ST. PAUL MN 55102
Paul E. Munson officer: SVP & Corp. Controller 385 WASHINGTON STREET, ST. PAUL MN 55102
Russell G. Golden director 385 WASHINGTON STREET, ST. PAUL MN 55102
David Donnay Rowland officer: EVP & Co-Chief Invest. Officer 385 WASHINGTON STREET, ST. PAUL MN 55102
Avrohom J. Kess officer: Vice Chmn & Chief Legal Off 385 WASHINGTON STREET, ST. PAUL MN 55102
Daniel S. Frey officer: Chief Financial Officer 385 WASHINGTON STREET, ST. PAUL MN 55102
Jeffrey P. Klenk officer: EVP & Pres., Bond & Spec. Ins. 385 WASHINGTON STREET, ST. PAUL MN 55102
Gregory C Toczydlowski officer: EVP & President, Business Ins. 385 WASHINGTON STREET, ST. PAUL MN 55102
Diane Kurtzman officer: EVP & Chief HR Officer 385 WASHINGTON STREET, ST. PAUL MN 55102
Alan D Schnitzer officer: Vice Chairman 385 WASHINGTON STREET, ST. PAUL MN 55102
Daniel Tei-hwa Yin officer: EVP & Co-Chief Invest. Officer 385 WASHINGTON STREET, ST. PAUL MN 55102
Douglas K Russel officer: Controller THE TRAVELERS COMPANIES INC, ONE TOWER SQ, HARTFORD CT 06183

The Travelers (The Travelers) Headlines

From GuruFocus

Q4 2023 Travelers Companies Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q2 2020 Travelers Companies Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2021 Travelers Companies Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2019 Travelers Companies Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Travelers Completes Acquisition of Corvus Insurance

By Business Wire 01-02-2024

Q4 2022 Travelers Companies Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2019 Travelers Companies Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2023 Travelers Companies Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2020 Travelers Companies Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024