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APLD (Applied Digital) Return-on-Tangible-Equity : -30.50% (As of Feb. 2025)


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What is Applied Digital Return-on-Tangible-Equity?

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. Applied Digital's annualized net income for the quarter that ended in Feb. 2025 was $-142.2 Mil. Applied Digital's average shareholder tangible equity for the quarter that ended in Feb. 2025 was $466.2 Mil. Therefore, Applied Digital's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2025 was -30.50%.

The historical rank and industry rank for Applied Digital's Return-on-Tangible-Equity or its related term are showing as below:

APLD' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -161.95   Med: -63.28   Max: -7.83
Current: -85.7

During the past 12 years, Applied Digital's highest Return-on-Tangible-Equity was -7.83%. The lowest was -161.95%. And the median was -63.28%.

APLD's Return-on-Tangible-Equity is ranked worse than
90.54% of 2409 companies
in the Software industry
Industry Median: 8.89 vs APLD: -85.70

Applied Digital Return-on-Tangible-Equity Historical Data

The historical data trend for Applied Digital'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.

* Premium members only.

Applied Digital Return-on-Tangible-Equity Chart

Applied Digital Annual Data
Trend May04 May05 May06 May07 May08 May20 May21 May22 May23 May24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - -67.51 -67.76 -161.95

Applied Digital Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -183.37 -211.90 -9.27 -164.07 -30.50

Competitive Comparison of Applied Digital's Return-on-Tangible-Equity

For the Information Technology Services subindustry, Applied Digital'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.


Applied Digital's Return-on-Tangible-Equity Distribution in the Software Industry

For the Software industry and Technology sector, Applied Digital's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Applied Digital's Return-on-Tangible-Equity falls into.


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Applied Digital Return-on-Tangible-Equity Calculation

Applied Digital's annualized Return-on-Tangible-Equity for the fiscal year that ended in May. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: May. 2024 )  (A: May. 2023 )(A: May. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: May. 2024 )  (A: May. 2023 )(A: May. 2024 )
=-149.274/( (59.517+124.83 )/ 2 )
=-149.274/92.1735
=-161.95 %

Applied Digital's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2025 )  (Q: Nov. 2024 )(Q: Feb. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2025 )  (Q: Nov. 2024 )(Q: Feb. 2025 )
=-142.22/( (434.572+497.867)/ 2 )
=-142.22/466.2195
=-30.50 %

* 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 four times the quarterly (Feb. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Applied Digital  (NAS:APLD) 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.


Applied Digital Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Applied Digital's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Applied Digital Business Description

Traded in Other Exchanges
N/A
Address
3811 Turtle Creek Boulevard, Suite 2100, Dallas, TX, USA, 75219
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments; Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business which operates data centers to provide energized space to crypto mining customers.
Executives
Richard N Nottenburg director 1303 EAST ALGONQUIN ROAD, SCHAUMBURG IL 60196
Wes Cummins director, 10 percent owner, officer: CEO & Chairman 4505 LORRAINE AVE, DALLAS TX 75205
Douglas S Miller director C/O TELENAV, INC., 4655 GREAT AMERICA PK, SUITE 300, SANTA CLARA CA 95054
Virginia Moore director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN,INC., DALLAS TX 75219
Michael Maniscalco officer: Chief Technology Officer 3811 TURTLE CREEK BOULEVARD, SUITE 2100, DALLAS TX 75219
David Rench officer: Chief Financial Officer 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Regina Ingel officer: EVP - Operations 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Chuck Hastings director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Kelli Mcdonald director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Jason Zhang director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Richard S Rosenfeld officer: CFO 105 STONEBRIDGE ROAD, MONTCLAIR NJ 07042
James A Schwartz director 28 COTTRELL STREET, MYSTIC CT 06355
Riley Investment Management Llc 10 percent owner 11100 SANTA MONICA BLVD., SUITE 810, LOS ANGELES CA 90025
Riley Investment Partners Master Fund, L.p. 10 percent owner 11100 SANTA MONICA BOULEVARD, SUITE 810, LOS ANGELES CA 90025
Samuel A Kovnat director, officer: Chief Executive Officer