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. Redwood Monthlyome Fund's annualized net income for the quarter that ended in Dec. 2017 was $11.43 Mil. Redwood Monthlyome Fund's average shareholder tangible equity for the quarter that ended in Dec. 2017 was $112.91 Mil. Therefore, Redwood Monthlyome Fund's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2017 was 10.12%.
The historical rank and industry rank for Redwood Monthlyome Fund's Return-on-Tangible-Equity or its related term are showing as below:
BVPIF's Return-on-Tangible-Equity is not ranked *
in the Asset Management industry.
Industry Median: 7.205 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Redwood Monthlyome Fund (OTCPK:BVPIF) 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.
Redwood Monthlyome Fund Return-on-Tangible-Equity Related Terms
Redwood Monthlyome Fund Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Redwood Monthlyome Fund'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.
Redwood Monthlyome Fund Return-on-Tangible-Equity Chart
BVPIF vs MDLY, GARS, ICMB: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Redwood Monthlyome Fund'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.
Redwood Monthlyome Fund Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Redwood Monthlyome Fund's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Redwood Monthlyome Fund'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 two times the semi-annual (Dec. 2017) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.12% mean?
Redwood Monthlyome Fund (BVPIF) has a Return-on-Tangible-Equity of 10.12% as of Dec. 2017. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Redwood Monthlyome Fund and its competitors.
Is Redwood Monthlyome Fund's Return-on-Tangible-Equity too high?
Redwood Monthlyome Fund's current Return-on-Tangible-Equity is 10.12%. The Asset Management industry median Return-on-Tangible-Equity is 7.21. Redwood Monthlyome Fund's value of 10.12% is 40.5% above this industry median.
How does Redwood Monthlyome Fund's Return-on-Tangible-Equity compare to MDLY and GARS?
Redwood Monthlyome Fund's Return-on-Tangible-Equity of 10.12% can be compared against companies in the Asset Management industry. The industry median Return-on-Tangible-Equity is 7.21. Redwood Monthlyome Fund's value of 10.12% is 40.5% 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 an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.21, based on 1,588 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. Redwood Monthlyome Fund's current Return-on-Tangible-Equity of 10.12% is 40.5% 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 Redwood Monthlyome Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Monthlyome Fund's current Return-on-Tangible-Equity is 10.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Monthlyome Fund stock overvalued right now?
Redwood Monthlyome Fund (BVPIF) has a current Return-on-Tangible-Equity of 10.12%. The current Return-on-Tangible-Equity is 10.12% and 40.5% above the Asset Management industry median of 7.21. 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 Redwood Monthlyome Fund (BVPIF), the current Return-on-Tangible-Equity is 10.12% as of Dec. 2017. 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.
Redwood Monthly Income Fund is a closed-end investment trust. Its investment objectives are to provide Unitholders with the benefits of a high level of monthly income, together with the opportunity for capital appreciation. The Fund seeks to achieve its Investment Objectives through active asset and sector allocation and by investing in those income-producing securities that the Sub-Advisor believes represent the weighting to achieve the Investment Objectives. The Fund has exposure to a diversified portfolio consisting of income-producing securities, including but not limited to income trusts, dividend-paying common shares, convertible debt, preferred shares and investment-grade fixed income investments.
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