Earthstone Energy (Earthstone Energy) Return-on-Tangible-Asset : 5.30% (As of Sep. 2023)

Earthstone Energy Return-on-Tangible-Asset Chart

Earthstone Energy Annual Data
	Trend	Mar13	Mar14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22
Return-on-Tangible-Asset		Get a 7-Day Free Trial					4.69	0.07	-1.28	2.77	16.47

Earthstone Energy Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Return-on-Tangible-Asset	Get a 7-Day Free Trial															23.55	13.24	6.12	5.73	5.30

Competitive Comparison of Earthstone Energy's Return-on-Tangible-Asset

For the Oil & Gas E&P subindustry, Earthstone Energy'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.

Earthstone Energy's Return-on-Tangible-Asset Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Earthstone Energy's Return-on-Tangible-Asset distribution charts can be found below:

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

Earthstone Energy Return-on-Tangible-Asset Calculation

Earthstone Energy's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2022 is calculated as:

Earthstone Energy's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 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-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 four times the quarterly (Sep. 2023) net income data.

Earthstone Energy  (NYSE:ESTE) 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.

Earthstone Energy Return-on-Tangible-Asset Related Terms

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Earthstone Energy (Earthstone Energy) Business Description