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Fedbank Financial Services (BOM:544027) Return-on-Tangible-Equity : 11.27% (As of Mar. 2025)


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What is Fedbank Financial Services 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. Fedbank Financial Services's annualized net income for the quarter that ended in Mar. 2025 was ₹2,866 Mil. Fedbank Financial Services's average shareholder tangible equity for the quarter that ended in Mar. 2025 was ₹25,438 Mil. Therefore, Fedbank Financial Services's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 11.27%.

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

BOM:544027' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.41   Med: 10.44   Max: 14.39
Current: 9.38

During the past 5 years, Fedbank Financial Services's highest Return-on-Tangible-Equity was 14.39%. The lowest was 7.41%. And the median was 10.44%.

BOM:544027's Return-on-Tangible-Equity is ranked better than
61.36% of 515 companies
in the Credit Services industry
Industry Median: 6.31 vs BOM:544027: 9.38

Fedbank Financial Services Return-on-Tangible-Equity Historical Data

The historical data trend for Fedbank Financial Services'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.

Fedbank Financial Services Return-on-Tangible-Equity Chart

Fedbank Financial Services Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Return-on-Tangible-Equity
7.41 10.44 14.39 13.56 9.38

Fedbank Financial Services Quarterly Data
Mar21 Mar22 Jun22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 11.99 12.45 10.76 3.13 11.27

Competitive Comparison of Fedbank Financial Services's Return-on-Tangible-Equity

For the Credit Services subindustry, Fedbank Financial Services'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.


Fedbank Financial Services's Return-on-Tangible-Equity Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Fedbank Financial Services's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Fedbank Financial Services's Return-on-Tangible-Equity falls into.


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Fedbank Financial Services Return-on-Tangible-Equity Calculation

Fedbank Financial Services's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=2251.8/( (22567.2+25438 )/ 2 )
=2251.8/24002.6
=9.38 %

Fedbank Financial Services's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=2866/( (0+25438)/ 1 )
=2866/25438
=11.27 %

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


Fedbank Financial Services  (BOM:544027) 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.


Fedbank Financial Services Return-on-Tangible-Equity Related Terms

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


Fedbank Financial Services Business Description

Traded in Other Exchanges
Address
Paspoli, Plot No. 71 A, Unit No. 1101, 11th Floor, Cignus, Powai, Mumbai, MH, IND, 400087
Fedbank Financial Services Ltd is a retail-focused non-banking finance company. It is focused on catering to the MSMEs and the emerging self-employed individuals (ESEIs) sector. It has a well-tailored suite of products targeted to match its customers' needs, which includes mortgage loans such as housing loans; small ticket loans against property (LAP); medium ticket LAP, unsecured business loans, and gold loans. It also has a Phygital doorstep model, a combination of digital and physical initiatives, for providing customized services to its customers across all of its products. The company's operations are classified into three business segments; the Retail Finance segment which derives the majority of its revenue, Distribution segment, and the Wholesale Finance segment.

Fedbank Financial Services Headlines

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