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CAE (CAE) Return-on-Tangible-Equity : 59.34% (As of Mar. 2025)


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What is CAE 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. CAE's annualized net income for the quarter that ended in Mar. 2025 was $379 Mil. CAE's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $638 Mil. Therefore, CAE's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 59.34%.

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

CAE' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -43.12   Med: 28.99   Max: 84.55
Current: 41.22

During the past 13 years, CAE's highest Return-on-Tangible-Equity was 84.55%. The lowest was -43.12%. And the median was 28.99%.

CAE's Return-on-Tangible-Equity is ranked better than
84.18% of 297 companies
in the Aerospace & Defense industry
Industry Median: 8.13 vs CAE: 41.22

CAE Return-on-Tangible-Equity Historical Data

The historical data trend for CAE'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.

CAE Return-on-Tangible-Equity Chart

CAE Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.40 21.70 64.78 -43.27 39.91

CAE Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 -217.76 19.33 19.76 68.62 59.34

Competitive Comparison of CAE's Return-on-Tangible-Equity

For the Aerospace & Defense subindustry, CAE'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.


CAE's Return-on-Tangible-Equity Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, CAE's Return-on-Tangible-Equity distribution charts can be found below:

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


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CAE Return-on-Tangible-Equity Calculation

CAE's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=282.321/( (704.048+710.852 )/ 2 )
=282.321/707.45
=39.91 %

CAE's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=378.656/( (565.312+710.852)/ 2 )
=378.656/638.082
=59.34 %

* 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. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


CAE  (NYSE:CAE) 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.


CAE Return-on-Tangible-Equity Related Terms

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


CAE Business Description

Traded in Other Exchanges
Address
8585 Cote de Liesse, Saint-Laurent, QC, CAN, H4T 1G6
CAE Inc provides training and aviation services, integrated enterprise solutions, in-service support, and crew-sourcing services. The company operations are managed through two segments: Civil Aviation which offers comprehensive training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation, a complete range of flight simulation training devices, ab initio pilot training, and crew sourcing services, as well as aircraft flight operations solutions; and Defense and Security which is a world-wide training and simulation provider delivering scalable, platform-independent solutions that enable and enhance force readiness and security. It generates the majority of its revenue from the Civil Aviation segment.