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. Torrent Power's annualized net income for the quarter that ended in Mar. 2024 was ₹17,210 Mil. Torrent Power's average shareholder tangible equity for the quarter that ended in Mar. 2024 was ₹111,722 Mil. Therefore, Torrent Power's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 15.40%.
The historical rank and industry rank for Torrent Power's Return-on-Tangible-Equity or its related term are showing as below:
BOM:532779'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.72 Med: 11.86 Max: 21.28
Current: 17.94
During the past 13 years, Torrent Power's highest Return-on-Tangible-Equity was 21.28%. The lowest was 1.72%. And the median was 11.86%.
BOM:532779's Return-on-Tangible-Equity is ranked better than 77.01% of 422
companies
in the Utilities - Independent Power Producers industry
Industry Median: 7.285
vs BOM:532779: 17.94
Torrent Power Return-on-Tangible-Equity Historical Data
The historical data trend for Torrent Power'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 Torrent Power's Return-on-Tangible-Equity
For the Utilities - Independent Power Producers subindustry, Torrent Power'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.
Torrent Power's Return-on-Tangible-Equity Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Torrent Power's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Torrent Power's Return-on-Tangible-Equity falls into.
Torrent Power Return-on-Tangible-Equity Calculation
Torrent Power's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2024 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 (Mar. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Torrent Power (BOM:532779) 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.
Torrent Power Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Torrent Power's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Torrent Power Ltd is an Indian utility company engaged in the business of power generation, transmission, and distribution. Both by itself and through its subsidiaries, Torrent Power operates a portfolio of gas, combined cycle, coal, wind, and solar power plants. The company's gas-fired facilities constitute most of its energy-producing capacity. Torrent Power generates the vast majority of its revenue from the supply of power generated by its facilities and transmitted through its power grids to areas of Western and Northern India. Its sales are fairly evenly divided among residential, commercial, low tension and high tension consumers. The low tension customer class would include smaller manufacturing units, while high tension would be composed of heavier industrial entities.
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