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Legato Merger IVLEGO 13 Return-on-Tangible-Asset is 3.06% as of May. 2026. GuruFocus rates LEGO with a GF Score™ of 13/100. Among 542 Diversified Financial Services companies, Legato Merger IV ranks better than 61.81% 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. Legato Merger IV's annualizedNet Income for the quarter that ended in May. 2026 was $7.15 Mil. Legato Merger IV's average total tangible assets for the quarter that ended in May. 2026 was $234.04 Mil. Therefore, Legato Merger IV's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 3.06%.
The historical rank and industry rank for Legato Merger IV's Return-on-Tangible-Asset or its related term are showing as below:
LEGO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0 Med: 0 Max: 1.59
Current: 1.59
During the past 0 years, Legato Merger IV's highest Return-on-Tangible-Asset was 1.59%. The lowest was 0.00%. And the median was 0.00%.
LEGO's Return-on-Tangible-Asset is ranked better than 61.81% of 542
companies
in the Diversified Financial Services industry
Industry Median: 0.885
vs LEGO: 1.59
Legato Merger IV (AMEX:LEGO) 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.
Legato Merger IV Return-on-Tangible-Asset Related Terms
Legato Merger IV Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Legato Merger IV'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.
Legato Merger IV Return-on-Tangible-Asset Chart
Legato Merger IV Annual Data
Trend
Return-on-Tangible-Asset
Legato Merger IV Quarterly Data
Sep25
Feb26
May26
Return-on-Tangible-Asset
0.00
1.18
3.06
LEGO vs ILLU, AACO, SVIV: Return-on-Tangible-Asset Comparison
For the Shell Companies subindustry, Legato Merger IV'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.
Legato Merger IV Return-on-Tangible-Asset vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Legato Merger IV's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Legato Merger IV'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 four times the quarterly (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 3.06% mean?
Legato Merger IV (LEGO) has a Return-on-Tangible-Asset of 3.06% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Legato Merger IV and its competitors. According to the industry distribution chart, Legato Merger IV ranks #207 out of 542 companies in the Diversified Financial Services industry, placing it in the top 38.2%.
Is Legato Merger IV's Return-on-Tangible-Asset too high?
Legato Merger IV's current Return-on-Tangible-Asset is 3.06%. The Diversified Financial Services industry median Return-on-Tangible-Asset is 0.89. Legato Merger IV's value of 3.06% is 245.8% above this industry median. Based on the distribution chart, Legato Merger IV ranks #207 out of 542 companies in the Diversified Financial Services industry, which is above the industry midpoint. Overall, Legato Merger IV has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Legato Merger IV's Return-on-Tangible-Asset compare to ILLU and AACO?
According to the Diversified Financial Services industry distribution chart, Legato Merger IV ranks #207 out of 542 companies for Return-on-Tangible-Asset. This puts Legato Merger IV in the upper half of its industry. The industry median Return-on-Tangible-Asset is 0.89. Legato Merger IV's value of 3.06% is 245.8% above 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 Diversified Financial Services company?
The median Return-on-Tangible-Asset among Diversified Financial Services companies is 0.89, based on 542 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. Legato Merger IV's current Return-on-Tangible-Asset of 3.06% is 245.8% above 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 Legato Merger IV and its competitors. For the Diversified Financial Services industry, the median Return-on-Tangible-Asset is 0.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Legato Merger IV's current Return-on-Tangible-Asset is 3.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legato Merger IV stock overvalued right now?
Legato Merger IV (LEGO) has a current Return-on-Tangible-Asset of 3.06%. The current Return-on-Tangible-Asset is 3.06% and 245.8% above the Diversified Financial Services industry median of 0.89. Legato Merger IV's overall GF Score™ is 13/100. 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 Legato Merger IV (LEGO), the current Return-on-Tangible-Asset is 3.06% as of May. 2026. 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.
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Legato Merger Corp IV is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities.
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