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Plus500 (LSE:PLUS) Return-on-Tangible-Equity : 44.80% (As of Jun. 2024)


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What is Plus500 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. Plus500's annualized net income for the quarter that ended in Jun. 2024 was £233.9 Mil. Plus500's average shareholder tangible equity for the quarter that ended in Jun. 2024 was £522.1 Mil. Therefore, Plus500's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 was 44.80%.

The historical rank and industry rank for Plus500's Return-on-Tangible-Equity or its related term are showing as below:

LSE:PLUS' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 37.89   Med: 93.39   Max: 153.47
Current: 41.44

During the past 13 years, Plus500's highest Return-on-Tangible-Equity was 153.47%. The lowest was 37.89%. And the median was 93.39%.

LSE:PLUS's Return-on-Tangible-Equity is ranked better than
87.89% of 768 companies
in the Capital Markets industry
Industry Median: 6.135 vs LSE:PLUS: 41.44

Plus500 Return-on-Tangible-Equity Historical Data

The historical data trend for Plus500'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.

Plus500 Return-on-Tangible-Equity Chart

Plus500 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 52.79 118.09 52.51 56.04 37.89

Plus500 Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 72.60 33.86 41.23 37.98 44.80

Competitive Comparison of Plus500's Return-on-Tangible-Equity

For the Capital Markets subindustry, Plus500'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.


Plus500's Return-on-Tangible-Equity Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Plus500's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Plus500's Return-on-Tangible-Equity falls into.



Plus500 Return-on-Tangible-Equity Calculation

Plus500'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 )
=214.406/( (609.017+522.585 )/ 2 )
=214.406/565.801
=37.89 %

Plus500's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2024 )  (Q: Dec. 2023 )(Q: Jun. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2024 )  (Q: Dec. 2023 )(Q: Jun. 2024 )
=233.914/( (522.585+521.668)/ 2 )
=233.914/522.1265
=44.80 %

* 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 (Jun. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Plus500  (LSE:PLUS) 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.


Plus500 Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Plus500's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Plus500 Business Description

Address
Matam, Building 10.2, Haifa, ISR, 3115001
Plus500 Ltd is an online provider of Contracts for Difference (CFDs). The company has developed and operates an online trading platform for retail customers to trade CFDs internationally, financial instruments comprising equities, indices, commodities, options, exchange-traded funds (ETFs), and foreign exchange. The trading platform is accessible from multiple operating systems including Windows, smartphones: iOS, Android, and Windows Phone, tablets: iOS, Android, and Surface, and web browsers. The group is engaged in three operating sectors: CFD trading; share dealing; and futures and options on futures.