GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Derwent London PLC (LSE:DLN) » Definitions » Return-on-Tangible-Equity

Derwent London (LSE:DLN) Return-on-Tangible-Equity : -18.06% (As of Dec. 2023)


View and export this data going back to 1984. Start your Free Trial

What is Derwent London Return-on-Tangible-Equity?

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. Derwent London's annualized net income for the quarter that ended in Dec. 2023 was £-666.4 Mil. Derwent London's average shareholder tangible equity for the quarter that ended in Dec. 2023 was £3,689.0 Mil. Therefore, Derwent London's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was -18.06%.

The historical rank and industry rank for Derwent London's Return-on-Tangible-Equity or its related term are showing as below:

LSE:DLN' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -12.56   Med: 5.57   Max: 27.75
Current: -12.48

During the past 13 years, Derwent London's highest Return-on-Tangible-Equity was 27.75%. The lowest was -12.56%. And the median was 5.57%.

LSE:DLN's Return-on-Tangible-Equity is ranked worse than
91.17% of 793 companies
in the REITs industry
Industry Median: 4.69 vs LSE:DLN: -12.48

Derwent London Return-on-Tangible-Equity Historical Data

The historical data trend for Derwent London'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.

* Premium members only.

Derwent London Return-on-Tangible-Equity Chart

Derwent London Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.57 -1.79 5.80 -6.59 -12.56

Derwent London Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.02 6.04 -19.35 -7.21 -18.06

Competitive Comparison of Derwent London's Return-on-Tangible-Equity

For the REIT - Office subindustry, Derwent London'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.


Derwent London's Return-on-Tangible-Equity Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Derwent London's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Derwent London's Return-on-Tangible-Equity falls into.



Derwent London Return-on-Tangible-Equity Calculation

Derwent London's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=-476.4/( (4075.5+3508.8 )/ 2 )
=-476.4/3792.15
=-12.56 %

Derwent London's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=-666.4/( (3869.2+3508.8)/ 2 )
=-666.4/3689
=-18.06 %

* 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 (Dec. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Derwent London  (LSE:DLN) 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.


Derwent London Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Derwent London's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Derwent London (LSE:DLN) Business Description

Industry
Traded in Other Exchanges
Address
25 Savile Row, London, GBR, W1S 2ER
Derwent London PLC is a London-focused real estate investment trust. Derwent owns, manages, and refurbishes office real estate in Central London. Within this region, the majority of the company's assets are located in the districts of London's West End, such as Fitzrovia. Properties in London's Tech Belt and the City Borders also represent significant parts of the company's real estate portfolio. Derwent derives nearly all of its revenue from tenants in the form of rental income structured in mid-to-long-term leases. Office buildings in the central West End are responsible for the majority of revenue generated. Media and advertising companies, professional and business services firms, and retail head offices are all fairly evenly represented among the company's tenants.

Derwent London (LSE:DLN) Headlines

From GuruFocus