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. LendingClub's annualized net income for the quarter that ended in Mar. 2023 was $55 Mil. LendingClub's average shareholder tangible equity for the quarter that ended in Mar. 2023 was $998 Mil. Therefore, LendingClub's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 was 5.48%.
The historical rank and industry rank for LendingClub's Return-on-Tangible-Equity or its related term are showing as below:
LC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -24.32 Med: -5.3 Max: 74.48
Current: 27.34
During the past 11 years, LendingClub's highest Return-on-Tangible-Equity was 74.48%. The lowest was -24.32%. And the median was -5.30%.
LC's Return-on-Tangible-Equity is ranked better than 89.11% of 505
companies
in the Credit Services industry
Industry Median: 6.42
vs LC: 27.34
LendingClub Return-on-Tangible-Equity Historical Data
The historical data trend for LendingClub'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.
LendingClub Annual Data
Trend
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Return-on-Tangible-Equity
-14.95
-3.54
-24.32
2.77
34.70
LendingClub Quarterly Data
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Return-on-Tangible-Equity
22.15
81.98
17.17
9.37
5.48
Competitive Comparison
For the Credit Services subindustry, LendingClub'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.
LendingClub Return-on-Tangible-Equity Distribution
For the Credit Services industry and Financial Services sector, LendingClub's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LendingClub's Return-on-Tangible-Equity falls in comparison to its industry or sector. The grey bar indicates the Return-on-Tangible-Equity's extreme value range as defined by GuruFocus.
LendingClub Return-on-Tangible-Equity Calculation
LendingClub's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2022 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 (Mar. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
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.
LendingClub Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of LendingClub's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
LendingClub Corp is a company engaged in operating an online lending marketplace platform that connects borrowers and investors for the provision of the loan facility. It offers investors access to an asset class that has generally been closed to many investors and only available on a limited basis to institutional investors. The company through the platform offer loan products such as personal, education and patient finance, small business and auto to interested investors. It generates a majority of the revenue from the transaction fees received from the platform's role in accepting and decisioning applications on behalf of the bank partners to enable loan originations.
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