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First Trust Senior Floating Rateome Fund IIFCT 24 Return-on-Tangible-Equity is 6.85% as of Nov. 2025, which is 60% above its 10-year median of 4.29. GuruFocus rates FCT with a GF Score™ of 24/100. The stock has 7 warning signs investors should review. Among 1,589 Asset Management companies, First Trust Senior Floating Rateome Fund II ranks worse than 54.19% on this metric.
FCT's Return-on-Tangible-Equity is ranked worse than 54.19% of 1589
companies
in the Asset Management industry
Industry Median: 7.21
vs FCT: 6.13
First Trust Senior Floating Rateome Fund II (NYSE:FCT) 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.
First Trust Senior Floating Rateome Fund II Return-on-Tangible-Equity Related Terms
First Trust Senior Floating Rateome Fund II Return-on-Tangible-Equity Historical Data
* 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.
First Trust Senior Floating Rateome Fund II Return-on-Tangible-Equity Chart
First Trust Senior Floating Rateome Fund II Annual Data
FCT vs GLO, ERC, CPZ: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, First Trust Senior Floating Rateome Fund II'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.
First Trust Senior Floating Rateome Fund II Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, First Trust Senior Floating Rateome Fund II's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where First Trust Senior Floating Rateome Fund II'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 (Nov. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.85% mean?
First Trust Senior Floating Rateome Fund II (FCT) has a Return-on-Tangible-Equity of 6.85% as of Nov. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on First Trust Senior Floating Rateome Fund II and its competitors. This is 60% above median its historical median of 4.29. According to the industry distribution chart, First Trust Senior Floating Rateome Fund II ranks #861 out of 1589 companies in the Asset Management industry, placing it in the top 54.2%.
Is First Trust Senior Floating Rateome Fund II's Return-on-Tangible-Equity too high?
First Trust Senior Floating Rateome Fund II's current Return-on-Tangible-Equity of 6.85% is 60% above median its 10-year median of 4.29. The Asset Management industry median Return-on-Tangible-Equity is 7.21. First Trust Senior Floating Rateome Fund II's value of 6.85% is 5% below this industry median. Based on the distribution chart, First Trust Senior Floating Rateome Fund II ranks #861 out of 1589 companies in the Asset Management industry, which is below the industry midpoint. Overall, First Trust Senior Floating Rateome Fund II has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does First Trust Senior Floating Rateome Fund II's Return-on-Tangible-Equity compare to GLO and ERC?
According to the Asset Management industry distribution chart, First Trust Senior Floating Rateome Fund II ranks #861 out of 1589 companies for Return-on-Tangible-Equity. This places First Trust Senior Floating Rateome Fund II in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.21. First Trust Senior Floating Rateome Fund II's value of 6.85% is 5% below this benchmark. While the company's 10-year median is 4.29 vs. the industry median of 7.21, First Trust Senior Floating Rateome Fund II has consistently been below the industry average. 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 1,589 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. First Trust Senior Floating Rateome Fund II's current Return-on-Tangible-Equity of 6.85% is 5% below 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 First Trust Senior Floating Rateome Fund II 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. First Trust Senior Floating Rateome Fund II's current Return-on-Tangible-Equity is 6.85%, which is 60% above median its own 10-year median of 4.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Trust Senior Floating Rateome Fund II stock overvalued right now?
First Trust Senior Floating Rateome Fund II (FCT) has a current Return-on-Tangible-Equity of 6.85%. The current Return-on-Tangible-Equity is 6.85%, which is 60% above median its 10-year median of 4.29 and 5% below the Asset Management industry median of 7.21. First Trust Senior Floating Rateome Fund II's overall GF Score™ is 24/100 with 7 warning signs to review. 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 First Trust Senior Floating Rateome Fund II (FCT), the current Return-on-Tangible-Equity is 6.85% as of Nov. 2025. 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.
First Trust Senior Floating Rateome Fund II Business Description
First Trust Senior Floating Rate Income Fund II is a United States-based diversified, closed-end management investment company. Its investment objective is to seek a high level of current income. As a secondary objective, it attempts to preserve capital. The fund invests in a portfolio of senior secured floating-rate corporate loans (Senior Loans) of companies from different industries, such as Insurance, Software, Health Care Providers and Services, Professional Services, Health Care Technology, IT Services, and others.
24GF Score
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