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GURUFOCUS.COM > STOCK LIST > Financial Services > Diversified Financial Services > Digital World Acquisition Corp (NAS:DWAC) > Definitions > Return-on-Tangible-Equity
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Digital World Acquisition Return-on-Tangible-Equity

: -2.67% (As of Mar. 2022)
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Return-on-Tangible-Equity is calculated as Net Income attributable to Common Stockholders divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Digital World Acquisition's annualized net income attributable to common stockholders for the quarter that ended in Mar. 2022 was $-7.54 Mil. Digital World Acquisition's average shareholder tangible equity for the quarter that ended in Mar. 2022 was $282.30 Mil. Therefore, Digital World Acquisition's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2022 was -2.67%.

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

DWAC' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.92   Med: -0.49   Max: -0.49
Current: -1.92

During the past 2 years, Digital World Acquisition's highest Return-on-Tangible-Equity was -0.49%. The lowest was -1.92%. And the median was -0.49%.

DWAC's Return-on-Tangible-Equity is ranked worse than
77.14% of 748 companies
in the Diversified Financial Services industry
Industry Median: 0.87 vs DWAC: -1.92

Digital World Acquisition Return-on-Tangible-Equity Historical Data

The historical data trend for Digital World Acquisition'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.

Digital World Acquisition Annual Data
Trend Dec20 Dec21
Return-on-Tangible-Equity
- -0.49

Digital World Acquisition Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22
Return-on-Tangible-Equity - -16.33 -0.45 -1.72 -2.67

Competitive Comparison

For the Shell Companies subindustry, Digital World Acquisition'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.

   

Digital World Acquisition Return-on-Tangible-Equity Distribution

For the Diversified Financial Services industry and Financial Services sector, Digital World Acquisition's Return-on-Tangible-Equity distribution charts can be found below:

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



Digital World Acquisition Return-on-Tangible-Equity Calculation

Digital World Acquisition's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2021 is calculated as

Return-on-Tangible-Equity=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2021 )  (A: Dec. 2020 )(A: Dec. 2021 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2021 )  (A: Dec. 2020 )(A: Dec. 2021 )
=-1.384/( (0+283.245 )/ 1 )
=-1.384/283.245
=-0.49 %

Digital World Acquisition's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2022 is calculated as

Return-on-Tangible-Equity=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2022 )  (Q: Dec. 2021 )(Q: Mar. 2022 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2022 )  (Q: Dec. 2021 )(Q: Mar. 2022 )
=-7.536/( (283.245+281.36)/ 2 )
=-7.536/282.3025
=-2.67 %

* 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 attributable to common stockholders 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 attributable to common stockholders data used here is four times the quarterly (Mar. 2022) net income attributable to common stockholders data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Digital World Acquisition  (NAS:DWAC) 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 attributable to common stockholders 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.


Digital World Acquisition Return-on-Tangible-Equity Related Terms

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


Digital World Acquisition Business Description

Digital World Acquisition logo
Industry
Traded in Other Exchanges
Address
78 SW 7th Street, Miami, FL, USA, 33130
Website
Digital World Acquisition Corp is a blank check company.
Executives
Barclays Plc 10 percent owner 1 CHURCHILL PLACE CANARY WHARF LONDON X0 E14 5HP
Orlando Patrick Francis director, 10 percent owner, officer: CEO and Chairman 212 E 48TH STREET - PHB NEW YORK NY 10017
Shaner Justin director 2000 S BAYSHORE DR UNIT 20 MIAMI FL 33133
Swider Eric director 2000 S BAYSHORE DR UNIT 20 MIAMI FL 33133
Veloso Rodrigo director 78 SW 7TH STREET MIAMI FL 33130
Garelick Bruce J. director 78 SW 7TH STREET MIAMI FL 33130
Montie Jacobson director 78 SW 7TH STREET MIAMI FL 33130
Orleans-braganza Luiz officer: Chief Financial Officer 78 SW 7TH STREET MIAMI FL 33130
Arc Global Investments Ii Llc 10 percent owner 78 SW 7TH STREET MIAMI FL 33130

Digital World Acquisition Headlines

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