Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Altech Digital Co's annualized net income for the quarter that ended in Mar. 2025 was $1.12 Mil. Altech Digital Co's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $0.43 Mil. Therefore, Altech Digital Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 259.60%.
The historical rank and industry rank for Altech Digital Co's Return-on-Tangible-Equity or its related term are showing as below:
ALD's Return-on-Tangible-Equity is not ranked *
in the Software industry.
Industry Median: 8.78 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Altech Digital Co (NAS:ALD) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Altech Digital Co Return-on-Tangible-Equity Related Terms
Altech Digital Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Altech Digital Co's Return-on-Tangible-Equity 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.
Altech Digital Co Return-on-Tangible-Equity Chart
Altech Digital Co Annual Data
Trend
Mar24
Mar25
Return-on-Tangible-Equity
Negative Tangible Equity
259.60
Altech Digital Co Semi-Annual Data
Mar24
Mar25
Return-on-Tangible-Equity
Negative Tangible Equity
259.60
ALD vs : Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Altech Digital Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Altech Digital Co Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Altech Digital Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Altech Digital Co's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is one times the annual (Mar. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 259.60% mean?
Altech Digital Co (ALD) has a Return-on-Tangible-Equity of 259.60% as of Mar. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Altech Digital Co and its competitors.
Is Altech Digital Co's Return-on-Tangible-Equity too high?
Altech Digital Co's current Return-on-Tangible-Equity is 259.60%. The Software industry median Return-on-Tangible-Equity is 8.78. Altech Digital Co's value of 259.60% is 2856.7% above this industry median.
How does Altech Digital Co's Return-on-Tangible-Equity compare to ?
Altech Digital Co's Return-on-Tangible-Equity of 259.60% can be compared against companies in the Software industry. The industry median Return-on-Tangible-Equity is 8.78. Altech Digital Co's value of 259.60% is 2856.7% 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-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.78, based on 2,473 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Altech Digital Co's current Return-on-Tangible-Equity of 259.60% is 2856.7% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Altech Digital Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Altech Digital Co's current Return-on-Tangible-Equity is 259.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Altech Digital Co stock overvalued right now?
Altech Digital Co (ALD) has a current Return-on-Tangible-Equity of 259.60%. The current Return-on-Tangible-Equity is 259.60% and 2856.7% above the Software industry median of 8.78. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Altech Digital Co (ALD), the current Return-on-Tangible-Equity is 259.60% as of Mar. 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.
Altech Digital Co Ltd is an IT solutions service provider and it operates its business in Hong Kong through its indirect wholly-owned Operating Subsidiary. The company focuses on providing comprehensive and inventive solutions designed to optimize business performance of its customers, meet various industry-specific operational challenges and create new business opportunities for them. It offers services to customers from a variety of industries including multinational financial services, property development and business solutions services. Its IT solutions services can be categorized into (i) system development services; and (ii) system maintenance and consultancy services.
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