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Capital Southwest (Capital Southwest) Return-on-Tangible-Equity : 13.63% (As of Dec. 2023)


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What is Capital Southwest 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. Capital Southwest's annualized net income for the quarter that ended in Dec. 2023 was $93.9 Mil. Capital Southwest's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $689.4 Mil. Therefore, Capital Southwest's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 13.63%.

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

CSWC' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.47   Med: 9.42   Max: 16.72
Current: 13.91

During the past 13 years, Capital Southwest's highest Return-on-Tangible-Equity was 16.72%. The lowest was -7.47%. And the median was 9.42%.

CSWC's Return-on-Tangible-Equity is ranked better than
77.21% of 1676 companies
in the Asset Management industry
Industry Median: 4.59 vs CSWC: 13.91

Capital Southwest Return-on-Tangible-Equity Historical Data

The historical data trend for Capital Southwest'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.

Capital Southwest Return-on-Tangible-Equity Chart

Capital Southwest Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.42 -7.47 16.72 11.31 6.54

Capital Southwest Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 2.27 12.62 15.53 13.99 13.63

Competitive Comparison of Capital Southwest's Return-on-Tangible-Equity

For the Asset Management subindustry, Capital Southwest'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.


Capital Southwest's Return-on-Tangible-Equity Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Capital Southwest's Return-on-Tangible-Equity distribution charts can be found below:

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



Capital Southwest Return-on-Tangible-Equity Calculation

Capital Southwest's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2023 )  (A: Mar. 2022 )(A: Mar. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2023 )  (A: Mar. 2022 )(A: Mar. 2023 )
=33.093/( (420.867+590.408 )/ 2 )
=33.093/505.6375
=6.54 %

Capital Southwest's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=93.936/( (657.774+720.965)/ 2 )
=93.936/689.3695
=13.63 %

* 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 (Dec. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Capital Southwest  (NAS:CSWC) 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.


Capital Southwest Return-on-Tangible-Equity Related Terms

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


Capital Southwest (Capital Southwest) Business Description

Traded in Other Exchanges
Address
8333 Douglas Avenue, Suite 1100, Dallas, TX, USA, 75225
Capital Southwest Corp is an us-based investment company that specializes in providing customized financing to middle market companies across various industries. The company's investment objective to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity related investments. It focuses on providing flexible financing solutions through partnership with business owners, management teams, and financial sponsors. The company's portfolio may include senior debt, second lien and subordinated debt, preferred stock and common stock and warrants. The primary source company's revenue comprises interest income and dividend income from investments made as well as management fees.
Executives
Ramona Lynn Rogers-windsor director 280 PARK AVENUE, 10TH FLOOR, NEW YORK NY 10017
Christine Battist director 601 CARLSON PARKWAY, SUITE 250, MINNETONKA MN 55305
David R Brooks director 1600 REDBUD BOULEVARD, SUITE 400, MCKINNEY TX 75069
Michael Scott Sarner officer: Chief Financial Officer 5400 LYNDON B. JOHNSON FREEWAY, SUITE 1300, DALLAS TX 75240
Thomas William R Iii director 12900 PRESTON ROAD, SUITE 700, DALLAS TX 75230
Thomas Duane Morgan director 9800 RICHMOND AVE, SUITE 305, HOUSTON TX 77042
Joshua S. Weinstein officer: Senior Managing Director C/O CAPITAL SOUTHWEST CORPORATION, 5400 LYNDON B JOHNSON FREEWAY, SUITE 130, DALLAS TX 75240
Bowen S Diehl director, officer: President and CEO 12900 PRESTON ROAD, SUITE 700, DALLAS TX 75230
Jack D Furst director 2591 LAKESIDE PARKWAY, SUITE 100, FLOWER MOUND TX 75022
John H Wilson director 12900 PRESTON RD, STE 700, DALLAS TX 75230
Douglas M. Kelley officer: Sr. VP & Managing Director 5400 LBJ FREEWAY, SUITE 1300, DALLAS TX 75240
Moab Partners Lp 10 percent owner PO BOX 352, SHORT HILLS NJ 07078
Moab Capital Partners Llc 10 percent owner PO BOX 352, SHORT HILLS NJ 07078
Joseph B Armes director, officer: President 5420 LYNDON B, JOHNSON FREEWAY, SUITE 500, DALLAS TX 75240
Moab Gp Llc 10 percent owner 15 EAST 62ND STREET, NEW YORK NY 10021