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. Azure Power Global's annualized net income for the quarter that ended in Mar. 2024 was $-40.3 Mil. Azure Power Global's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $406.2 Mil. Therefore, Azure Power Global's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was -9.92%.
The historical rank and industry rank for Azure Power Global's Return-on-Tangible-Equity or its related term are showing as below:
AZREF's Return-on-Tangible-Equity is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 4.69 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Azure Power Global (OTCPK:AZREF) 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.
Azure Power Global Return-on-Tangible-Equity Related Terms
Azure Power Global Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Azure Power Global'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.
Azure Power Global Return-on-Tangible-Equity Chart
AZREF vs SAFX, VGAS, STEM: Return-on-Tangible-Equity Comparison
For the Utilities - Renewable subindustry, Azure Power Global'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.
Azure Power Global Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Azure Power Global's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Azure Power Global'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. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -9.92% mean?
Azure Power Global (AZREF) has a Return-on-Tangible-Equity of -9.92% as of Mar. 2024. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Azure Power Global and its competitors.
Is Azure Power Global's Return-on-Tangible-Equity too high?
Azure Power Global's current Return-on-Tangible-Equity is -9.92%. Overall, Azure Power Global has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Azure Power Global's Return-on-Tangible-Equity compare to SAFX and VGAS?
Azure Power Global's Return-on-Tangible-Equity of -9.92% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Return-on-Tangible-Equity is 4.69. 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 an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.69, based on 426 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. 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 Azure Power Global and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azure Power Global's current Return-on-Tangible-Equity is -9.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azure Power Global stock overvalued right now?
Azure Power Global (AZREF) has a current Return-on-Tangible-Equity of -9.92%. The current Return-on-Tangible-Equity is -9.92%. Azure Power Global's overall GF Score™ is 12/100. 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 Azure Power Global (AZREF), the current Return-on-Tangible-Equity is -9.92% as of Mar. 2024. 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.
Azure Power Global Ltd is a utility-scale renewable energy project developer and operator. It is engaged in the development, construction, ownership, operation, maintenance, and management of renewable energy assets based on long-term contracts (Power Purchase Agreements or PPA) with Indian Government energy distribution companies, as well as other Indian non-governmental energy distribution companies and commercial customers.
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