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. HMS Holdings's annualized net income for the quarter that ended in Dec. 2020 was $131.3 Mil. HMS Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2020 was $216.6 Mil. Therefore, HMS Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2020 was 60.61%.
The historical rank and industry rank for HMS Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HMSY's Return-on-Tangible-Equity is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 9.91 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
HMS Holdings Return-on-Tangible-Equity Historical Data
The historical data trend for HMS Holdings'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 HMS Holdings's Return-on-Tangible-Equity
For the Health Information Services subindustry, HMS Holdings'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.
HMS Holdings's Return-on-Tangible-Equity Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, HMS Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HMS Holdings's Return-on-Tangible-Equity falls into.
HMS Holdings Return-on-Tangible-Equity Calculation
HMS Holdings's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2020 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 (Dec. 2020) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
HMS Holdings (NAS:HMSY) 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.
HMS Holdings Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of HMS Holdings's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
HMS Holdings Corp is a United States-based holding company that conducts businesses through its operating subsidiaries. The company offers services that help customers contain healthcare insurance benefit costs. Its primary offerings comprise coordination of benefits, payment integrity, and eligibility verification. The coordination of benefits service ensures the right party pays a health claim. The payment integrity service ensures the billing and/or payment is accurate and appropriate. The eligibility verification service ensures individuals meet qualifying criteria for healthcare programs. The company's customers include Medicaid agencies, government health agencies, health plans, government and private employers, and others. The company operates only within the United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HMSY has been successfully added to your 