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SHFS (SHF Holdings) ROE % : 22.99% (As of Mar. 2024)


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What is SHF Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. SHF Holdings's annualized net income for the quarter that ended in Mar. 2024 was $8.20 Mil. SHF Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $35.66 Mil. Therefore, SHF Holdings's annualized ROE % for the quarter that ended in Mar. 2024 was 22.99%.

The historical rank and industry rank for SHF Holdings's ROE % or its related term are showing as below:

SHFS' s ROE % Range Over the Past 10 Years
Min: -564.21   Med: -15.67   Max: 117.48
Current: -40.71

During the past 4 years, SHF Holdings's highest ROE % was 117.48%. The lowest was -564.21%. And the median was -15.67%.

SHFS's ROE % is ranked worse than
99.34% of 1515 companies
in the Banks industry
Industry Median: 9.48 vs SHFS: -40.71

SHF Holdings ROE % Historical Data

The historical data trend for SHF Holdings's ROE % 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.

SHF Holdings ROE % Chart

SHF Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROE %
117.48 56.22 -564.21 -87.56

SHF Holdings Quarterly Data
Dec20 Mar21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -23.02 -197.40 -11.01 32.40 22.99

Competitive Comparison of SHF Holdings's ROE %

For the Banks - Regional subindustry, SHF Holdings's ROE %, along with its competitors' market caps and ROE % 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.


SHF Holdings's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, SHF Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where SHF Holdings's ROE % falls into.



SHF Holdings ROE % Calculation

SHF Holdings's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-17.28/( (5.113+34.355)/ 2 )
=-17.28/19.734
=-87.56 %

SHF Holdings's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=8.2/( (34.355+36.967)/ 2 )
=8.2/35.661
=22.99 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


SHF Holdings  (NAS:SHFS) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=8.2/35.661
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(8.2 / 21.348)*(21.348 / 67.7815)*(67.7815 / 35.661)
=Net Margin %*Asset Turnover*Equity Multiplier
=38.41 %*0.315*1.9007
=ROA %*Equity Multiplier
=12.1 %*1.9007
=22.99 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=8.2/35.661
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (8.2 / 6.444) * (6.444 / 21.348) * (21.348 / 67.7815) * (67.7815 / 35.661)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1.2725 * 30.19 % * 0.315 * 1.9007
=22.99 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


SHF Holdings ROE % Related Terms

Thank you for viewing the detailed overview of SHF Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


SHF Holdings Business Description

Traded in Other Exchanges
N/A
Address
1526 Cole Boulevard, Suite 250, Golden, CO, USA, 80410
SHF Holdings Inc is a financial services provider to cannabis-related businesses. It offers reliable access to banking solutions for cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. The group, through its financial institution clients, implements accountability, transparency, monitoring, reporting and risk mitigation measures while meeting Bank Secrecy Act obligations in line with FinCEN guidance on cannabis-related businesses. Its services include Program Management Support, Customer Lead Generation, Ongoing Program Auditing, and Compliance Monitoring among others.
Executives
Doug Fagan director 1526 COLE BLVD, SUITE 250, GOLDEN CO 80401
Sundie Seefried officer: Chief Executive Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Dan Roda officer: EVP / Chief Operating Officer 1526 COLE BLVD, SUITE 250, GOLDEN CO 80401
Jonathon Niehaus director 5269 W. 62ND AVENUE, ARVADA CO 80003
Jonathan Summers director 909 BANNOCK STREET, DENVER CO 80204
Donald Emmi officer: Chief Legal Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Richard Carleton director 5269 W. 62ND AVENUE, ARVADA CO 80003
John Darwin director 909 BANNOCK STREET, DENVER CO 80204
Jennifer Meyers director 5269 W. 62ND AVENUE, ARVADA CO 80003
Jim Dennedy officer: Chief Financial Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Partner Colorado Credit Union 10 percent owner 6221 SHERIDAN BLVD, ARVADA CO 80003
Karl Racine director 5269 W. 62ND AVENUE, ARVADA CO 80003
Tyler Beuerlein officer: Chief Business Develop Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Midtown East Management Nl Llc 10 percent owner ONE ROCKEFELLER PLAZA, 32ND FLOOR, NEW YORK NY 10020
Atalaya Special Purpose Investment Fund Ii Lp 10 percent owner C/O ATALAYA CAPITAL MANAGEMENT LP, ONE ROCKEFELLER PLAZA, 32ND FLOOR, NEW YORK NY 10020