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. New Hope's annualized net income for the quarter that ended in Jan. 2024 was A$503 Mil. New Hope's average shareholder tangible equity for the quarter that ended in Jan. 2024 was A$2,444 Mil. Therefore, New Hope's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2024 was 20.60%.
The historical rank and industry rank for New Hope's Return-on-Tangible-Equity or its related term are showing as below:
ASX:NHC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.94 Med: 6.43 Max: 50.23
Current: 27.51
During the past 13 years, New Hope's highest Return-on-Tangible-Equity was 50.23%. The lowest was -8.94%. And the median was 6.43%.
ASX:NHC's Return-on-Tangible-Equity is ranked better than 80.81% of 172
companies
in the Other Energy Sources industry
Industry Median: 7.915
vs ASX:NHC: 27.51
New Hope Return-on-Tangible-Equity Historical Data
The historical data trend for New Hope'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 New Hope's Return-on-Tangible-Equity
For the Thermal Coal subindustry, New Hope'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.
New Hope's Return-on-Tangible-Equity Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, New Hope's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where New Hope's Return-on-Tangible-Equity falls into.
New Hope Return-on-Tangible-Equity Calculation
New Hope's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jul. 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 two times the semi-annual (Jan. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
New Hope (ASX:NHC) 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.
New Hope Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of New Hope's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
New Hope Corporation is an Australian thermal coal miner. It has two operating mines: the 100%-owned New Acland coal mine in Queensland and its 80%-owned Bengalla coal mine in New South Wales. The company should produce around 13 million metric tons of equity salable thermal coal annually from fiscal 2027, up from around 8 million in fiscal 2023, driven by the construction and ramp up of New Acland Stage 3. The vast majority of New Hope's production is sold into seaborne thermal coal export markets. Reserves at New Acland and Bengalla are sufficient to support multidecade mine lives. New Hope also has significant undeveloped coal resources in Queensland, as well as a 15% holding in the Malabar-Maxwell metallurgical coal mine, which began production in 2023.
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