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. Rocket Lab USA's annualized net income for the quarter that ended in Mar. 2024 was $-177.0 Mil. Rocket Lab USA's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $378.3 Mil. Therefore, Rocket Lab USA's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was -46.80%.
The historical rank and industry rank for Rocket Lab USA's Return-on-Tangible-Equity or its related term are showing as below:
RKLB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -56.34 Med: -38.93 Max: -24.27
Current: -41.95
During the past 4 years, Rocket Lab USA's highest Return-on-Tangible-Equity was -24.27%. The lowest was -56.34%. And the median was -38.93%.
RKLB's Return-on-Tangible-Equity is ranked worse than 86.55% of 290
companies
in the Aerospace & Defense industry
Industry Median: 7.77
vs RKLB: -41.95
Rocket Lab USA Return-on-Tangible-Equity Historical Data
The historical data trend for Rocket Lab USA'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 Rocket Lab USA's Return-on-Tangible-Equity
For the Aerospace & Defense subindustry, Rocket Lab USA'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.
Rocket Lab USA's Return-on-Tangible-Equity Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rocket Lab USA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rocket Lab USA's Return-on-Tangible-Equity falls into.
Rocket Lab USA Return-on-Tangible-Equity Calculation
Rocket Lab USA's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 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 four times the quarterly (Mar. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Rocket Lab USA (NAS:RKLB) 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.
Rocket Lab USA Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Rocket Lab USA's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Rocket Lab USA (Rocket Lab USA) Business Description
Rocket Lab USA Inc is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defence, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered more than 100 satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments being Launch Services and Space systems. Geographically it serves Japan, Germany, rest of the world and earns key revenue from the United States.
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