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Squarespace (FRA:8DT) Return-on-Tangible-Equity : Negative Tangible Equity% (As of Jun. 2024)


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What is Squarespace 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. Squarespace's annualized net income for the quarter that ended in Jun. 2024 was €23 Mil. Squarespace's average shareholder tangible equity for the quarter that ended in Jun. 2024 was €-569 Mil. Therefore, Squarespace's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 was Negative Tangible Equity%.

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

FRA:8DT's Return-on-Tangible-Equity is not ranked *
in the Software industry.
Industry Median: 8.76
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Squarespace Return-on-Tangible-Equity Historical Data

The historical data trend for Squarespace'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.

Squarespace Return-on-Tangible-Equity Chart

Squarespace Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Negative Tangible Equity Negative Tangible Equity - - -

Squarespace Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Negative Tangible Equity - Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Competitive Comparison of Squarespace's Return-on-Tangible-Equity

For the Software - Infrastructure subindustry, Squarespace'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.


Squarespace's Return-on-Tangible-Equity Distribution in the Software Industry

For the Software industry and Technology sector, Squarespace's Return-on-Tangible-Equity distribution charts can be found below:

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



Squarespace Return-on-Tangible-Equity Calculation

Squarespace's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=-6.493/( (-525.088+-606.039 )/ 2 )
=-6.493/-565.5635
=N/A %

Squarespace's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2024 )  (Q: Mar. 2024 )(Q: Jun. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2024 )  (Q: Mar. 2024 )(Q: Jun. 2024 )
=22.792/( (-599.781+-539.033)/ 2 )
=22.792/-569.407
=Negative Tangible Equity %

* 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 (Jun. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Squarespace  (FRA:8DT) 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.


Squarespace Return-on-Tangible-Equity Related Terms

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


Squarespace Business Description

Industry
Traded in Other Exchanges
N/A
Address
225 Varick Street, 12th Floor, New York, NY, USA, 10014
Squarespace is a provider of subscription-based website-building software and hosting services primarily servicing entrepreneurs and micro businesses. The company offers a range of add-on and standalone tools, including scheduling functionality, email marketing, member areas for paid content, and design tools for social media and video content. Following the 2021 acquisition of Tock, Squarespace has expanded into servicing hospitality customers with reservation, take-out, and event management software.

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