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. Management Consulting Group's annualized net income for the quarter that ended in Dec. 2019 was £-7.01 Mil. Management Consulting Group's average shareholder tangible equity for the quarter that ended in Dec. 2019 was £-3.08 Mil. Therefore, Management Consulting Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2019 was N/A%.
The historical rank and industry rank for Management Consulting Group's Return-on-Tangible-Equity or its related term are showing as below:
During the past 13 years, Management Consulting Group's highest Return-on-Tangible-Equity was -367.50%. The lowest was -1,108.15%. And the median was -737.83%.
LSE:MMC's Return-on-Tangible-Equity is not ranked *
in the Business Services industry.
Industry Median: 10.54 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Management Consulting Group (LSE:MMC) 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.
Management Consulting Group Return-on-Tangible-Equity Related Terms
Management Consulting Group 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.
Management Consulting Group Return-on-Tangible-Equity Chart
LSE:MMC vs INFO, VRSK, EFX: Return-on-Tangible-Equity Comparison
For the Consulting Services subindustry, Management Consulting Group'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.
Management Consulting Group Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Management Consulting Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Management Consulting Group'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. 2019) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.00% mean?
Management Consulting Group (LSE:MMC) has a Return-on-Tangible-Equity of 0.00% as of Dec. 2019. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Management Consulting Group and its competitors.
Is Management Consulting Group's Return-on-Tangible-Equity too high?
Management Consulting Group's current Return-on-Tangible-Equity is 0.00%.
How does Management Consulting Group's Return-on-Tangible-Equity compare to INFO and VRSK?
Management Consulting Group's Return-on-Tangible-Equity of 0.00% can be compared against companies in the Business Services industry. The industry median Return-on-Tangible-Equity is 10.54. 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 a Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.54, based on 1,009 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. 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 Management Consulting Group and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Management Consulting Group's current Return-on-Tangible-Equity is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Management Consulting Group stock overvalued right now?
Based on GuruFocus' analysis, Management Consulting Group (LSE:MMC) is currently considered Possible Value Trap. The current Return-on-Tangible-Equity is 0.00%. 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 Management Consulting Group (LSE:MMC), the current Return-on-Tangible-Equity is 0.00% as of Dec. 2019. 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.
Management Consulting Group PLC is engaged in providing professional services to various industries and sectors via the Proudfoot practice. Proudfoot, which is a professional service practice designs, implements and accelerates the operational transformation that realizes tomorrow's results today. The company serves various industries including manufacturing, natural resources, consumer packaged goods, transportation, automotive, building materials and heavy industry. It also provides market-specific local customization for Financial Services and Healthcare sectors. The company provides its services in the Americas, Europe among other regions, and generates a vast majority of its revenue from Europe.
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