Sovereign Cloud Holdings (ASX:SOV) Return-on-Tangible-Equity : -102.45% (As of Dec. 2023)

Sovereign Cloud Holdings Return-on-Tangible-Equity Chart

Competitive Comparison of Sovereign Cloud Holdings's Return-on-Tangible-Equity

For the Software - Infrastructure subindustry, Sovereign Cloud 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.

Sovereign Cloud Holdings's Return-on-Tangible-Equity Distribution in the Software Industry

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

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

Sovereign Cloud Holdings Return-on-Tangible-Equity Calculation

Sovereign Cloud Holdings's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2023 is calculated as

Sovereign Cloud Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 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 two times the semi-annual (Dec. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

Sovereign Cloud Holdings  (ASX:SOV) 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.

Sovereign Cloud Holdings Return-on-Tangible-Equity Related Terms

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Sovereign Cloud Holdings (ASX:SOV) Business Description