What is New Mountain Finance 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. New Mountain Finance's annualized net income for the quarter that ended in Dec. 2023 was $109.0 Mil. New Mountain Finance's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $1,322.5 Mil. Therefore, New Mountain Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 8.24%.
The historical rank and industry rank for New Mountain Finance's Return-on-Tangible-Equity or its related term are showing as below:
NMFC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.02 Med: 8.46 Max: 15.84
Current: 10.23
During the past 13 years, New Mountain Finance's highest Return-on-Tangible-Equity was 15.84%. The lowest was 4.02%. And the median was 8.46%.
NMFC's Return-on-Tangible-Equity is ranked better than 67.64% of 1675
companies
in the Asset Management industry
Industry Median: 4.53
vs NMFC: 10.23
New Mountain Finance Return-on-Tangible-Equity Historical Data
The historical data trend for New Mountain Finance'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.
New Mountain Finance Return-on-Tangible-Equity Chart
Competitive Comparison of New Mountain Finance's Return-on-Tangible-Equity
For the Asset Management subindustry, New Mountain Finance'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.
New Mountain Finance's Return-on-Tangible-Equity Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, New Mountain Finance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where New Mountain Finance's Return-on-Tangible-Equity falls into.
New Mountain Finance Return-on-Tangible-Equity Calculation
New Mountain Finance's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 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 (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
New Mountain Finance (NAS:NMFC) 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.
New Mountain Finance Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of New Mountain Finance's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
New Mountain Finance (New Mountain Finance) Business Description
New Mountain Finance Corp is a closed-end, non-diversified management investment company. It invests in equity interests such as preferred stock, common stock, warrants, or options received in connection with debt investments or may include direct investment in the equity of private companies. The company's investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second-lien debt, notes, bonds, and mezzanine securities.
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