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. Spotify Technology's annualizedNet Income for the quarter that ended in Mar. 2026 was CHF2,625 Mil. Spotify Technology's average total tangible assets for the quarter that ended in Mar. 2026 was CHF11,937 Mil. Therefore, Spotify Technology's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 21.99%.
The historical rank and industry rank for Spotify Technology's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:SPOT'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -52.05 Med: -5.43 Max: 21.75
Current: 21.75
During the past 11 years, Spotify Technology's highest Return-on-Tangible-Asset was 21.75%. The lowest was -52.05%. And the median was -5.43%.
XSWX:SPOT's Return-on-Tangible-Asset is ranked better than 90.16% of 569
companies
in the Interactive Media industry
Industry Median: 0.85
vs XSWX:SPOT: 21.75
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.
Spotify Technology Return-on-Tangible-Asset Related Terms
Spotify Technology Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Spotify Technology'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.
XSWX:SPOT vs NBIS, BIDU, RDDT: Return-on-Tangible-Asset Comparison
For the Internet Content & Information subindustry, Spotify Technology'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.
Spotify Technology Return-on-Tangible-Asset vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Spotify Technology's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Spotify Technology'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 (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 21.99% mean?
Spotify Technology (XSWX:SPOT) has a Return-on-Tangible-Asset of 21.99% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Spotify Technology and its competitors. According to the industry distribution chart, Spotify Technology ranks #56 out of 569 companies in the Interactive Media industry, placing it in the top 9.8%.
Is Spotify Technology's Return-on-Tangible-Asset too high?
Spotify Technology's current Return-on-Tangible-Asset is 21.99%. The Interactive Media industry median Return-on-Tangible-Asset is 0.85. Spotify Technology's value of 21.99% is 2487.1% above this industry median. Based on the distribution chart, Spotify Technology ranks #56 out of 569 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Spotify Technology has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Spotify Technology's Return-on-Tangible-Asset compare to NBIS and BIDU?
According to the Interactive Media industry distribution chart, Spotify Technology ranks #56 out of 569 companies for Return-on-Tangible-Asset. This places Spotify Technology in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 0.85. Spotify Technology's value of 21.99% is 2487.1% 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 an Interactive Media company?
The median Return-on-Tangible-Asset among Interactive Media companies is 0.85, based on 569 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. Spotify Technology's current Return-on-Tangible-Asset of 21.99% is 2487.1% 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 Spotify Technology and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Asset is 0.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spotify Technology's current Return-on-Tangible-Asset is 21.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spotify Technology stock overvalued right now?
Spotify Technology (XSWX:SPOT) has a current Return-on-Tangible-Asset of 21.99%. The stock's GF Value™ is CHF388.20, compared to a current price of CHF385.50 — trading 0.7% below its estimated fair value. The current Return-on-Tangible-Asset is 21.99% and 2487.1% above the Interactive Media industry median of 0.85. Spotify Technology's overall GF Score™ is 77/100 with 2 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 Spotify Technology (XSWX:SPOT), the current Return-on-Tangible-Asset is 21.99% as of Mar. 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.
Is Spotify Technology (XSWX:SPOT) Overvalued in 2026?
Based on GuruFocus' analysis, Spotify Technology stock appears to be undervalued.
The current stock price of CHF385.50 is trading 0.7% below its estimated GF Value™ of CHF388.20.
Key valuation signals for XSWX:SPOT:
Return-on-Tangible-Asset: 21.99%
GF Value™: CHF388.20 vs. price of CHF385.50 (0.7% below fair value)
Industry Position: 2487.1% above the Interactive Media median (#56 of 569)
No single metric tells the full story. See the XSWX:SPOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spotify is the leading global music streaming service, with over 750 million monthly active users and nearly 300 million paying subscribers, with the latter constituting the firm's premium segment. Most of the firm's revenue and nearly all its gross profit come from subscribers, who pay a monthly fee to access a music library that includes most of the most popular songs ever recorded, including all from the major record labels. The firm also offers access to audiobooks and integrates podcasts within its standard music app. Podcast content is not exclusive and is typically free to access on other platforms. Ad-supported users can access a similar music catalog, but cannot customize a similar on-demand experience.
77GF Score
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