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Valens Semiconductor (Valens Semiconductor) Return-on-Tangible-Equity : -24.91% (As of Mar. 2024)


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What is Valens Semiconductor 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. Valens Semiconductor's annualized net income for the quarter that ended in Mar. 2024 was $-40.17 Mil. Valens Semiconductor's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $161.23 Mil. Therefore, Valens Semiconductor's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was -24.91%.

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

VLN' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -53.08   Med: -15.83   Max: -11.85
Current: -14.95

During the past 5 years, Valens Semiconductor's highest Return-on-Tangible-Equity was -11.85%. The lowest was -53.08%. And the median was -15.83%.

VLN's Return-on-Tangible-Equity is ranked worse than
83.42% of 959 companies
in the Semiconductors industry
Industry Median: 5.24 vs VLN: -14.95

Valens Semiconductor Return-on-Tangible-Equity Historical Data

The historical data trend for Valens Semiconductor'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.

Valens Semiconductor Return-on-Tangible-Equity Chart

Valens Semiconductor Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
- - -53.08 -15.83 -11.85

Valens Semiconductor Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -12.87 -11.00 -30.84 6.93 -24.91

Competitive Comparison of Valens Semiconductor's Return-on-Tangible-Equity

For the Semiconductors subindustry, Valens Semiconductor'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.


Valens Semiconductor's Return-on-Tangible-Equity Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Valens Semiconductor's Return-on-Tangible-Equity distribution charts can be found below:

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



Valens Semiconductor Return-on-Tangible-Equity Calculation

Valens Semiconductor'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 )
=-19.661/( (167.441+164.304 )/ 2 )
=-19.661/165.8725
=-11.85 %

Valens Semiconductor's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=-40.168/( (164.304+158.152)/ 2 )
=-40.168/161.228
=-24.91 %

* 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.


Valens Semiconductor  (NYSE:VLN) 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.


Valens Semiconductor Return-on-Tangible-Equity Related Terms

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


Valens Semiconductor (Valens Semiconductor) Business Description

Traded in Other Exchanges
N/A
Address
8 Hanagar Street, PO Box 7152, Hod Hasharon, ISR, 4501309
Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Audio-Video, which includes the company's HDBaseT solutions for the Audio-Video market deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical segments include Israel, China, Hong Kong, the United States, Mexico, Japan, and Others.