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SCP Healthcare Acquisition Co (NAS:SHACW) 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.
SCP Healthcare Acquisition Co Return-on-Tangible-Asset Related Terms
SCP Healthcare Acquisition 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.
SCP Healthcare Acquisition Co Return-on-Tangible-Asset Chart
SHACW vs TMAC, TRIS, ITQ: Return-on-Tangible-Asset Comparison
For the Shell Companies subindustry, SCP Healthcare Acquisition 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.
SCP Healthcare Acquisition Co Return-on-Tangible-Asset vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, SCP Healthcare Acquisition Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where SCP Healthcare Acquisition 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 four times the quarterly (Sep. 2022) net income data.
What does a Return-on-Tangible-Asset of 1.97% mean?
SCP Healthcare Acquisition Co (SHACW) has a Return-on-Tangible-Asset of 1.97% as of Sep. 2022. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on SCP Healthcare Acquisition Co and its competitors. This is 74% below median its historical median of 7.55. Over the past decade, SCP Healthcare Acquisition Co's Return-on-Tangible-Asset has ranged from 4.34 to 7.55.
Is SCP Healthcare Acquisition Co's Return-on-Tangible-Asset too high?
SCP Healthcare Acquisition Co's current Return-on-Tangible-Asset of 1.97% is 74% below median its 10-year median of 7.55. Over the past 10 years, this metric has ranged from a low of 4.34 to a high of 7.55. The Diversified Financial Services industry median Return-on-Tangible-Asset is 0.97. SCP Healthcare Acquisition Co's value of 1.97% is 103.1% above this industry median. Overall, SCP Healthcare Acquisition Co has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does SCP Healthcare Acquisition Co's Return-on-Tangible-Asset compare to TMAC and TRIS?
SCP Healthcare Acquisition Co's Return-on-Tangible-Asset of 1.97% can be compared against companies in the Diversified Financial Services industry. The industry median Return-on-Tangible-Asset is 0.97. SCP Healthcare Acquisition Co's value of 1.97% is 103.1% above this benchmark. Historically, SCP Healthcare Acquisition Co's own Return-on-Tangible-Asset has ranged from 4.34 to 7.55 over the past decade. While the company's 10-year median is 7.55 vs. the industry median of 0.97, SCP Healthcare Acquisition Co has consistently been above 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 Diversified Financial Services company?
The median Return-on-Tangible-Asset among Diversified Financial Services companies is 0.97, based on 527 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. SCP Healthcare Acquisition Co's current Return-on-Tangible-Asset of 1.97% is 103.1% 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 SCP Healthcare Acquisition Co and its competitors. For the Diversified Financial Services industry, the median Return-on-Tangible-Asset is 0.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SCP Healthcare Acquisition Co's current Return-on-Tangible-Asset is 1.97%, which is 74% below median its own 10-year median of 7.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SCP Healthcare Acquisition Co stock overvalued right now?
SCP Healthcare Acquisition Co (SHACW) has a current Return-on-Tangible-Asset of 1.97%. The current Return-on-Tangible-Asset is 1.97%, which is 74% below median its 10-year median of 7.55 and 103.1% above the Diversified Financial Services industry median of 0.97. SCP Healthcare Acquisition Co's overall GF Score™ is 24/100 with 3 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 SCP Healthcare Acquisition Co (SHACW), the current Return-on-Tangible-Asset is 1.97% as of Sep. 2022. 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.
SCP & CO Healthcare Acquisition Co is a blank check company that intends to initially focus its search on identifying a prospective target business in the healthcare technology or healthcare-related industries in the United States and other developed countries.
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