Ramsay Health CareASX:RHC -0.26%87 Return-on-Tangible-Asset is 2.05% as of Dec. 2025, which is 54% below its 10-year median of 4.47. GuruFocus rates ASX:RHC with a GF Score™ of 87/100 and a GF Value™ of A$50.80 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 683 Healthcare Providers & Services companies, Ramsay Health Care ranks worse than 52.71% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Ramsay Health Care's annualizedNet Income for the quarter that ended in Dec. 2025 was A$321 Mil. Ramsay Health Care's average total tangible assets for the quarter that ended in Dec. 2025 was A$15,712 Mil. Therefore, Ramsay Health Care's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 2.05%.
The historical rank and industry rank for Ramsay Health Care's Return-on-Tangible-Asset or its related term are showing as below:
ASX:RHC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.16 Med: 4.47 Max: 7.82
Current: 1.89
During the past 13 years, Ramsay Health Care's highest Return-on-Tangible-Asset was 7.82%. The lowest was 0.16%. And the median was 4.47%.
ASX:RHC's Return-on-Tangible-Asset is ranked worse than 52.71% of 683
companies
in the Healthcare Providers & Services industry
Industry Median: 2.43
vs ASX:RHC: 1.89
Ramsay Health Care (ASX:RHC) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Ramsay Health Care Return-on-Tangible-Asset Related Terms
Ramsay Health Care Return-on-Tangible-Asset Historical Data
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The historical data trend for Ramsay Health Care's Return-on-Tangible-Asset 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.
ASX:RHC vs HCA, THC, DVA: Return-on-Tangible-Asset Comparison
For the Medical Care Facilities subindustry, Ramsay Health Care's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Ramsay Health Care Return-on-Tangible-Asset vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Ramsay Health Care's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Ramsay Health Care's Return-on-Tangible-Asset falls into.
* 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-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 2.05% mean?
Ramsay Health Care (ASX:RHC) has a Return-on-Tangible-Asset of 2.05% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Ramsay Health Care and its competitors. This is 54% below median its historical median of 4.47. Over the past decade, Ramsay Health Care's Return-on-Tangible-Asset has ranged from 0.16 to 7.82. According to the industry distribution chart, Ramsay Health Care ranks #360 out of 683 companies in the Healthcare Providers & Services industry, placing it in the top 52.7%.
Is Ramsay Health Care's Return-on-Tangible-Asset too high?
Ramsay Health Care's current Return-on-Tangible-Asset of 2.05% is 54% below median its 10-year median of 4.47. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 7.82. The Healthcare Providers & Services industry median Return-on-Tangible-Asset is 2.43. Ramsay Health Care's value of 2.05% is 15.6% below this industry median. Based on the distribution chart, Ramsay Health Care ranks #360 out of 683 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Ramsay Health Care has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ramsay Health Care's Return-on-Tangible-Asset compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Ramsay Health Care ranks #360 out of 683 companies for Return-on-Tangible-Asset. This places Ramsay Health Care in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.43. Ramsay Health Care's value of 2.05% is 15.6% below this benchmark. Historically, Ramsay Health Care's own Return-on-Tangible-Asset has ranged from 0.16 to 7.82 over the past decade. While the company's 10-year median is 4.47 vs. the industry median of 2.43, Ramsay Health Care has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Healthcare Providers & Services company?
The median Return-on-Tangible-Asset among Healthcare Providers & Services companies is 2.43, based on 683 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ramsay Health Care's current Return-on-Tangible-Asset of 2.05% is 15.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Ramsay Health Care and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Asset is 2.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ramsay Health Care's current Return-on-Tangible-Asset is 2.05%, which is 54% below median its own 10-year median of 4.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramsay Health Care stock overvalued right now?
Based on GuruFocus' analysis, Ramsay Health Care (ASX:RHC) is currently considered Modestly Undervalued. The stock's GF Value™ is A$50.80, compared to a current price of A$42.94 — trading 15.5% below its estimated fair value. The current Return-on-Tangible-Asset is 2.05%, which is 54% below median its 10-year median of 4.47 and 15.6% below the Healthcare Providers & Services industry median of 2.43. Ramsay Health Care's overall GF Score™ is 87/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Ramsay Health Care (ASX:RHC), the current Return-on-Tangible-Asset is 2.05% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ramsay Health Care (ASX:RHC) Overvalued in 2026?
Based on GuruFocus' analysis, Ramsay Health Care stock appears to be undervalued.
The current stock price of A$42.94 is trading 15.5% below its estimated GF Value™ of A$50.80.
GuruFocus considers Ramsay Health Care to be Modestly Undervalued.
Key valuation signals for ASX:RHC:
Return-on-Tangible-Asset: 2.05% (54% below median its 10-year median of 4.47)
GF Value™: A$50.80 vs. price of A$42.94 (15.5% below fair value)
Industry Position: 15.6% below the Healthcare Providers & Services median (#360 of 683)
No single metric tells the full story. See the ASX:RHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ramsay Health Care is one of the largest private healthcare providers in the world, with more than 500 sites across about eight countries. The key markets in which it operates are Australia, France, the UK, and Sweden. It is the largest private hospital group in each of these markets except for the UK, where it is the largest independent supplier to the NHS. Ramsay Santé, which operates the European regions other than the UK, is a 53%-owned subsidiary of Ramsay Health Care. The company typically earns about two-thirds of consolidated earnings in Australia. Ramsay Health Care undertakes both private and publicly funded healthcare.
87GF Score
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