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Nemetschek SE (WBO:NEM) Return-on-Tangible-Equity : 203.36% (As of Mar. 2024)


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What is Nemetschek SE 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. Nemetschek SE's annualized net income for the quarter that ended in Mar. 2024 was €170.2 Mil. Nemetschek SE's average shareholder tangible equity for the quarter that ended in Mar. 2024 was €83.7 Mil. Therefore, Nemetschek SE's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 203.36%.

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

WBO:NEM' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0   Med: 0   Max: 787.08
Current: 787.08

During the past 13 years, Nemetschek SE's highest Return-on-Tangible-Equity was 787.08%. The lowest was 0.00%. And the median was 0.00%.

WBO:NEM's Return-on-Tangible-Equity is ranked better than
90.6% of 2383 companies
in the Software industry
Industry Median: 7.88 vs WBO:NEM: 787.08

Nemetschek SE Return-on-Tangible-Equity Historical Data

The historical data trend for Nemetschek SE'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.

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Nemetschek SE Return-on-Tangible-Equity Chart

Nemetschek SE 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 Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Nemetschek SE Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity 537.49 203.36

Competitive Comparison of Nemetschek SE's Return-on-Tangible-Equity

For the Software - Application subindustry, Nemetschek SE'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.


Nemetschek SE's Return-on-Tangible-Equity Distribution in the Software Industry

For the Software industry and Technology sector, Nemetschek SE's Return-on-Tangible-Equity distribution charts can be found below:

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



Nemetschek SE Return-on-Tangible-Equity Calculation

Nemetschek SE'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 )
=161.256/( (-75.48+59.432 )/ 2 )
=161.256/-8.024
=Negative Tangible Equity %

Nemetschek SE'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 )
=170.188/( (59.432+107.943)/ 2 )
=170.188/83.6875
=203.36 %

* 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.


Nemetschek SE  (WBO:NEM) 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.


Nemetschek SE Return-on-Tangible-Equity Related Terms

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


Nemetschek SE (WBO:NEM) Business Description

Industry
Address
Konrad-Zuse-Platz 1, Munich, BY, DEU, 81829
Nemetschek is a German company that makes software products for the architecture, engineering, and construction industry mainly, but also for the media and entertainment industry. Its software solutions cover the entire life cycle of building and infrastructure projects (design, build, and manage). In media and entertainment, it is one of the world's leading providers of software for the creation of 3D animation and visual effects in movies, TV shows, and gaming.