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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. Hanhua Financial Holding Co's annualizedNet Income for the quarter that ended in Jun. 2024 was €5.58 Mil. Hanhua Financial Holding Co's average total tangible assets for the quarter that ended in Jun. 2024 was €1,666.08 Mil. Therefore, Hanhua Financial Holding Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2024 was 0.33%.
The historical rank and industry rank for Hanhua Financial Holding Co's Return-on-Tangible-Asset or its related term are showing as below:
FRA:5HF's Return-on-Tangible-Asset is not ranked *
in the Credit Services industry.
Industry Median: 1.94 * Ranked among companies with meaningful Return-on-Tangible-Asset only.
Hanhua Financial Holding Co (FRA:5HF) 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.
Hanhua Financial Holding Co Return-on-Tangible-Asset Related Terms
Hanhua Financial Holding Co Return-on-Tangible-Asset Historical Data
* 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.
Hanhua Financial Holding Co Return-on-Tangible-Asset Chart
FRA:5HF vs V, MA, AXP: Return-on-Tangible-Asset Comparison
For the Credit Services subindustry, Hanhua Financial Holding Co'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.
Hanhua Financial Holding Co Return-on-Tangible-Asset vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Hanhua Financial Holding Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Hanhua Financial Holding Co'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 (Jun. 2024) net income data.
What does a Return-on-Tangible-Asset of 0.33% mean?
Hanhua Financial Holding Co (FRA:5HF) has a Return-on-Tangible-Asset of 0.33% as of Jun. 2024. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Hanhua Financial Holding Co and its competitors.
Is Hanhua Financial Holding Co's Return-on-Tangible-Asset too high?
Hanhua Financial Holding Co's current Return-on-Tangible-Asset is 0.33%. The Credit Services industry median Return-on-Tangible-Asset is 1.94. Hanhua Financial Holding Co's value of 0.33% is 83% below this industry median. Overall, Hanhua Financial Holding Co has a GF Score™ of 32/100, reflecting its overall financial health beyond just this single metric.
How does Hanhua Financial Holding Co's Return-on-Tangible-Asset compare to V and MA?
Hanhua Financial Holding Co's Return-on-Tangible-Asset of 0.33% can be compared against companies in the Credit Services industry. The industry median Return-on-Tangible-Asset is 1.94. Hanhua Financial Holding Co's value of 0.33% is 83% below this benchmark. 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 Credit Services company?
The median Return-on-Tangible-Asset among Credit Services companies is 1.94, based on 548 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. Hanhua Financial Holding Co's current Return-on-Tangible-Asset of 0.33% is 83% 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 Hanhua Financial Holding Co and its competitors. For the Credit Services industry, the median Return-on-Tangible-Asset is 1.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hanhua Financial Holding Co's current Return-on-Tangible-Asset is 0.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hanhua Financial Holding Co stock overvalued right now?
Hanhua Financial Holding Co (FRA:5HF) has a current Return-on-Tangible-Asset of 0.33%. The current Return-on-Tangible-Asset is 0.33% and 83% below the Credit Services industry median of 1.94. Hanhua Financial Holding Co's overall GF Score™ is 32/100. 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 Hanhua Financial Holding Co (FRA:5HF), the current Return-on-Tangible-Asset is 0.33% as of Jun. 2024. 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.
Hanhua Financial Holding Co Ltd is engaged in the investment business, investment management, and investment advisory. The company offers financial services to serve the financing and business needs of SMEs and microenterprises under several business lines such as credit guarantee, small loans, internet finance, financial factoring, capital management, and financing leases in China. Its segment includes Digital services; Digital finance; capital investment and financial asset management; and others. It derives revenue from Digital Finance segment.
32GF Score
Get the complete analysis for FRA:5HF
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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