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. VMware's annualized net income for the quarter that ended in Jul. 2023 was $1,908 Mil. VMware's average shareholder tangible equity for the quarter that ended in Jul. 2023 was $-7,789 Mil. Therefore, VMware's annualized Return-on-Tangible-Equity for the quarter that ended in Jul. 2023 was Negative Tangible Equity%.
The historical rank and industry rank for VMware's Return-on-Tangible-Equity or its related term are showing as below:
VMW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.44 Med: 32.27 Max: 37.96
Current: Negative Tangible Equity
During the past 13 years, VMware's highest Return-on-Tangible-Equity was 37.96%. The lowest was 12.44%. And the median was 32.27%.
VMW's Return-on-Tangible-Equity is not ranked
in the Software industry.
Industry Median: 7.72
vs VMW: Negative Tangible Equity
VMware Return-on-Tangible-Equity Historical Data
The historical data trend for VMware'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 VMware's Return-on-Tangible-Equity
For the Software - Infrastructure subindustry, VMware'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.
VMware's Return-on-Tangible-Equity Distribution in the Software Industry
For the Software industry and Technology sector, VMware's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where VMware's Return-on-Tangible-Equity falls into.
VMware Return-on-Tangible-Equity Calculation
VMware's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jan. 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 (Jul. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
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.
VMware Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of VMware's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
VMware is an industry titan in virtualizing IT infrastructure and became a stand-alone entity after spinning off from Dell Technologies in November 2021. The software provider operates in three segments: licenses; subscriptions and software as a service; and services. VMware's solutions are used across IT infrastructure, application development, and cybersecurity teams, and the company takes a neutral approach to being the cohesion between cloud environments. The Palo Alto, California, firm operates and sells on a global scale, with about half its revenue from the United States, through direct sales, distributors, and partnerships.
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