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GCP Infrastructure Investments (LSE:GCP) Return-on-Tangible-Equity : 2.10% (As of Mar. 2024)


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What is GCP Infrastructure Investments 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. GCP Infrastructure Investments's annualized net income for the quarter that ended in Mar. 2024 was £19.86 Mil. GCP Infrastructure Investments's average shareholder tangible equity for the quarter that ended in Mar. 2024 was £945.24 Mil. Therefore, GCP Infrastructure Investments's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 2.10%.

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

LSE:GCP' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.08   Med: 7.35   Max: 14.66
Current: 1.57

During the past 13 years, GCP Infrastructure Investments's highest Return-on-Tangible-Equity was 14.66%. The lowest was -0.08%. And the median was 7.35%.

LSE:GCP's Return-on-Tangible-Equity is ranked worse than
64.97% of 1673 companies
in the Asset Management industry
Industry Median: 5.23 vs LSE:GCP: 1.57

GCP Infrastructure Investments Return-on-Tangible-Equity Historical Data

The historical data trend for GCP Infrastructure Investments'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.

GCP Infrastructure Investments Return-on-Tangible-Equity Chart

GCP Infrastructure Investments Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.01 -0.08 6.81 14.66 3.16

GCP Infrastructure Investments Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 Premium Member Only 22.77 6.30 5.18 1.06 2.10

Competitive Comparison of GCP Infrastructure Investments's Return-on-Tangible-Equity

For the Asset Management subindustry, GCP Infrastructure Investments'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.


GCP Infrastructure Investments's Return-on-Tangible-Equity Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, GCP Infrastructure Investments's Return-on-Tangible-Equity distribution charts can be found below:

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



GCP Infrastructure Investments Return-on-Tangible-Equity Calculation

GCP Infrastructure Investments's annualized Return-on-Tangible-Equity for the fiscal year that ended in Sep. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Sep. 2023 )  (A: Sep. 2022 )(A: Sep. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Sep. 2023 )  (A: Sep. 2022 )(A: Sep. 2023 )
=30.905/( (998.057+956.553 )/ 2 )
=30.905/977.305
=3.16 %

GCP Infrastructure Investments's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2024 )  (Q: Sep. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Sep. 2023 )(Q: Mar. 2024 )
=19.858/( (956.553+933.918)/ 2 )
=19.858/945.2355
=2.10 %

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


GCP Infrastructure Investments  (LSE:GCP) 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.


GCP Infrastructure Investments Return-on-Tangible-Equity Related Terms

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


GCP Infrastructure Investments (LSE:GCP) Business Description

Traded in Other Exchanges
Address
IFC 5, Saint Helier, JEY, JE1 1ST
GCP Infrastructure Investments Ltd is a closed-ended investment company. The company's investment objectives are to provide its shareholders with regular, sustained, long-term distributions and to preserve the capital value of its investment assets over the long term, by generating exposure to subordinated private finance initiative (PFI) debt and similar assets. It mainly makes investments in subordinated debt instruments issued by infrastructure project companies and assets with a similar economic effect. The company also acquires the senior debt of infrastructure project companies. The company makes use of leverage to finance the acquisition of investments and enhance returns to investors as well as the gearing of investments.