Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. New Relic's annualizedNet Income for the quarter that ended in Sep. 2023 was $-95.0 Mil. New Relic's average total tangible assets for the quarter that ended in Sep. 2023 was $711.5 Mil. Therefore, New Relic's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2023 was -13.35%.
The historical rank and industry rank for New Relic's Return-on-Tangible-Asset or its related term are showing as below:
NEWR'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -62.81 Med: -17.61 Max: -5.64
Current: -14.28
During the past 12 years, New Relic's highest Return-on-Tangible-Asset was -5.64%. The lowest was -62.81%. And the median was -17.61%.
NEWR's Return-on-Tangible-Asset is not ranked
in the Software industry.
Industry Median: 1.29
vs NEWR: -14.28
New Relic Return-on-Tangible-Asset Historical Data
The historical data trend for New Relic's Return-on-Tangible-Asset 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 New Relic's Return-on-Tangible-Asset
For the Software - Application subindustry, New Relic'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.
New Relic's Return-on-Tangible-Asset Distribution in the Software Industry
For the Software industry and Technology sector, New Relic's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where New Relic's Return-on-Tangible-Asset falls into.
New Relic Return-on-Tangible-Asset Calculation
New Relic's annualized Return-on-Tangible-Asset for the fiscal year that ended in Mar. 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.
New Relic (NYSE:NEWR) 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 companys 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 companys 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.
New Relic Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of New Relic's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
New Relic Inc is a provider of software analytics solutions for organizations to collect, store, and analyze massive amounts of software data in real-time. The firm's flagship New Relic Software Analytics Cloud is made up of a suite of products, a Big Data database, and an open platform. Its solutions include diagnostics, reporting and alerting, transaction monitoring, and performance monitoring capabilities. The firm generates revenue from subscription-based arrangements for software offerings, typically for a year. A majority of the firm's revenue is generated in the United States, and the rest from Europe, the Middle East, and Africa; the Asia-Pacific; and other regions.
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