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. Volkswagen AG's annualized net income for the quarter that ended in Dec. 2023 was €19,316 Mil. Volkswagen AG's average shareholder tangible equity for the quarter that ended in Dec. 2023 was €87,306 Mil. Therefore, Volkswagen AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 22.12%.
The historical rank and industry rank for Volkswagen AG's Return-on-Tangible-Equity or its related term are showing as below:
XTER:VOW3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.81 Med: 22.61 Max: 37.52
Current: 19.6
During the past 13 years, Volkswagen AG's highest Return-on-Tangible-Equity was 37.52%. The lowest was -4.81%. And the median was 22.61%.
XTER:VOW3's Return-on-Tangible-Equity is ranked better than 79.37% of 1246
companies
in the Vehicles & Parts industry
Industry Median: 8.365
vs XTER:VOW3: 19.60
Volkswagen AG Return-on-Tangible-Equity Historical Data
The historical data trend for Volkswagen AG'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 Volkswagen AG's Return-on-Tangible-Equity
For the Auto Manufacturers subindustry, Volkswagen AG'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.
Volkswagen AG's Return-on-Tangible-Equity Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Volkswagen AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Volkswagen AG's Return-on-Tangible-Equity falls into.
Volkswagen AG Return-on-Tangible-Equity Calculation
Volkswagen AG's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 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 four times the quarterly (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Volkswagen AG (XTER:VOW3) 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.
Volkswagen AG Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Volkswagen AG's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Volkswagen is one of the world's largest automotive manufacturers. Automotive brands include Volkswagen passenger cars, Audi, Bentley, Lamborghini, Porsche, SEAT, and Skoda. Commercial vehicle brands include MAN, Navistar, Scania, and Volkswagen. The company's financial services group provides dealer financing to support floor plans, consumer financing for vehicle purchases, vehicle leasing, banking, and other financial services. In 2022, Europe was Volkswagen's largest light vehicle market at 41% of total volume, followed by China at 37%, and rest of world at 22%.
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