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. Life Storage's annualized net income for the quarter that ended in Mar. 2023 was $326 Mil. Life Storage's average shareholder tangible equity for the quarter that ended in Mar. 2023 was $3,577 Mil. Therefore, Life Storage's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 was 9.13%.
The historical rank and industry rank for Life Storage's Return-on-Tangible-Equity or its related term are showing as below:
LSI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.72 Med: 9.43 Max: 12.44
Current: 10.34
During the past 13 years, Life Storage's highest Return-on-Tangible-Equity was 12.44%. The lowest was 4.72%. And the median was 9.43%.
LSI's Return-on-Tangible-Equity is not ranked
in the REITs industry.
Industry Median: 4.59
vs LSI: 10.34
Life Storage Return-on-Tangible-Equity Historical Data
The historical data trend for Life Storage'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 Life Storage's Return-on-Tangible-Equity
For the REIT - Industrial subindustry, Life Storage'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.
Life Storage's Return-on-Tangible-Equity Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Life Storage's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Life Storage's Return-on-Tangible-Equity falls into.
Life Storage Return-on-Tangible-Equity Calculation
Life Storage's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2022 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. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Life Storage (NYSE:LSI) 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.
Life Storage Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Life Storage's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Life Storage Inc (which was rebranded from Sovran Self Storage, Inc in 2016) is a fully integrated, real estate investment trust that acquires and manages self-storage properties throughout the United States. The company operates under the brand names Life Storage. Approximately under half of the company's revenue is derived from stores in the states of Texas and Florida. The remainder of sales is distributed across the United States. The company's operations in rental income from customers renting storage space on a month-to-month basis generate a majority of operating revenue. The company also offers storage to both individuals of commercial renters and has special storage units available for vehicles and wine.
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