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BOW (Bowhead Specialty Holdings) Return-on-Tangible-Equity : 12.00% (As of Mar. 2025)


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What is Bowhead Specialty Holdings 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. Bowhead Specialty Holdings's annualized net income for the quarter that ended in Mar. 2025 was $45.7 Mil. Bowhead Specialty Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $380.9 Mil. Therefore, Bowhead Specialty Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 12.00%.

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

BOW' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.79   Med: 13.6   Max: 18.19
Current: 12.79

During the past 3 years, Bowhead Specialty Holdings's highest Return-on-Tangible-Equity was 18.19%. The lowest was 12.79%. And the median was 13.60%.

BOW's Return-on-Tangible-Equity is ranked worse than
50.1% of 495 companies
in the Insurance industry
Industry Median: 12.79 vs BOW: 12.79

Bowhead Specialty Holdings Return-on-Tangible-Equity Historical Data

The historical data trend for Bowhead Specialty Holdings'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.

Bowhead Specialty Holdings Return-on-Tangible-Equity Chart

Bowhead Specialty Holdings Annual Data
Trend Dec22 Dec23 Dec24
Return-on-Tangible-Equity
13.50 18.19 13.60

Bowhead Specialty Holdings Quarterly Data
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 14.26 8.18 13.73 14.80 12.00

Competitive Comparison of Bowhead Specialty Holdings's Return-on-Tangible-Equity

For the Insurance - Property & Casualty subindustry, Bowhead Specialty Holdings'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.


Bowhead Specialty Holdings's Return-on-Tangible-Equity Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Bowhead Specialty Holdings's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Bowhead Specialty Holdings's Return-on-Tangible-Equity falls into.


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Bowhead Specialty Holdings Return-on-Tangible-Equity Calculation

Bowhead Specialty Holdings's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=38.243/( (192.077+370.442 )/ 2 )
=38.243/281.2595
=13.60 %

Bowhead Specialty Holdings'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 )
=45.7/( (370.442+391.363)/ 2 )
=45.7/380.9025
=12.00 %

* 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.


Bowhead Specialty Holdings  (NYSE:BOW) 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.


Bowhead Specialty Holdings Return-on-Tangible-Equity Related Terms

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


Bowhead Specialty Holdings Business Description

Traded in Other Exchanges
N/A
Address
452 Fifth Avenue, New York, NY, USA, 10018
Bowhead Specialty Holdings Inc offers commercial specialty property and casualty insurance products. The company offers underwriting solutions to various businesses across four underwriting divisions, which include Casualty, Professional Liability, Healthcare Liability, and Baleen Specialty. A majority of its revenue is generated from the Casualty division which specializes in general liability coverage, which protects a company against liability arising from bodily injury, personal injury or property damage, for risks in the construction, distribution, heavy manufacturing, real estate, public entity and hospitality segments and also considers underwriting risks in a broader range of industries. Geographically, the company operates in the United States.