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SmartPay Holdings (NZSE:SPY) Return-on-Tangible-Equity : 64.71% (As of Mar. 2024)


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What is SmartPay Holdings 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. SmartPay Holdings's annualized net income for the quarter that ended in Mar. 2024 was NZ$11.54 Mil. SmartPay Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2024 was NZ$17.83 Mil. Therefore, SmartPay Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 64.71%.

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

NZSE:SPY' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 49.04   Med: 86.91   Max: 185.98
Current: 50.55

During the past 13 years, SmartPay Holdings's highest Return-on-Tangible-Equity was 185.98%. The lowest was 49.04%. And the median was 86.91%.

NZSE:SPY's Return-on-Tangible-Equity is ranked better than
83.42% of 2383 companies
in the Software industry
Industry Median: 7.88 vs NZSE:SPY: 50.55

SmartPay Holdings Return-on-Tangible-Equity Historical Data

The historical data trend for SmartPay 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.

* Premium members only.

SmartPay Holdings Return-on-Tangible-Equity Chart

SmartPay Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 185.98 86.91 49.04

SmartPay Holdings Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 135.94 83.15 91.77 35.36 64.71

Competitive Comparison of SmartPay Holdings's Return-on-Tangible-Equity

For the Software - Infrastructure subindustry, SmartPay 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.


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

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

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



SmartPay Holdings Return-on-Tangible-Equity Calculation

SmartPay Holdings's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2024 )  (A: Mar. 2023 )(A: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2024 )  (A: Mar. 2023 )(A: Mar. 2024 )
=8.406/( (14.228+20.054 )/ 2 )
=8.406/17.141
=49.04 %

SmartPay Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2024 )  (Q: Sep. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Sep. 2023 )(Q: Mar. 2024 )
=11.538/( (15.606+20.054)/ 2 )
=11.538/17.83
=64.71 %

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


SmartPay Holdings  (NZSE:SPY) 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.


SmartPay Holdings Return-on-Tangible-Equity Related Terms

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


SmartPay Holdings (NZSE:SPY) Business Description

Traded in Other Exchanges
Address
205-209 Wairau Road, Wairau Valley, Auckland, NZL, 0627
SmartPay Holdings Ltd is engaged in the provision of payment solutions. It offers an electronic funds transfer at point of sale (EFTPOS) system. Its products include EFTPOS applications, Smartpay Labs, EFTPOS terminals, and mobile EFTPOS machines. The company designs develops and implements payment solutions for customers in New Zealand and Australia. It also licenses its technologies to third parties. The firm's majority of revenue comes from New Zealand.