R8 Capital Investments (LSE:MODE) Return-on-Tangible-Equity: Negative Tangible Equity% (As of Jun. 2025)


What is R8 Capital Investments Return-on-Tangible-Equity?

R8 Capital Investments LSE:MODE Return-on-Tangible-Equity is Negative Tangible Equity% as of Jun. 2025. The stock has 5 warning signs investors should review. Among 2,469 Software companies, R8 Capital Investments ranks better than 99.92% on this metric.

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. R8 Capital Investments's annualized net income for the quarter that ended in Jun. 2025 was £3.91 Mil. R8 Capital Investments's average shareholder tangible equity for the quarter that ended in Jun. 2025 was £-2.17 Mil. Therefore, R8 Capital Investments's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2025 was Negative Tangible Equity%.

The historical rank and industry rank for R8 Capital Investments's Return-on-Tangible-Equity or its related term are showing as below:

LSE:MODE' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -427.24   Med: -204.62   Max: -142.75
Current: Negative Tangible Equity

During the past 8 years, R8 Capital Investments's highest Return-on-Tangible-Equity was -142.75%. The lowest was -427.24%. And the median was -204.62%.

LSE:MODE's Return-on-Tangible-Equity is ranked better than
99.92% of 2469 companies
in the Software industry
Industry Median: 8.62 vs LSE:MODE: Negative Tangible Equity

R8 Capital Investments  (LSE:MODE) 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.


R8 Capital Investments Return-on-Tangible-Equity Related Terms


R8 Capital Investments Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for R8 Capital 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.

R8 Capital Investments Return-on-Tangible-Equity Chart

R8 Capital Investments Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial -142.75 -166.70 -427.24 0.00 0.00

R8 Capital Investments Semi-Annual Data
Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
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 0.00 0.00 Negative Tangible Equity 0.00 Negative Tangible Equity

LSE:MODE vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison

For the Software - Infrastructure subindustry, R8 Capital 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.


R8 Capital Investments Return-on-Tangible-Equity vs Software Industry

For the Software industry and Technology sector, R8 Capital Investments's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where R8 Capital Investments's Return-on-Tangible-Equity falls into.



R8 Capital Investments Return-on-Tangible-Equity Calculation

R8 Capital Investments's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=-0.715/( (-2.43+-3.145 )/ 2 )
=-0.715/-2.7875
=N/A %

R8 Capital Investments's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2025 )  (Q: Dec. 2024 )(Q: Jun. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2025 )  (Q: Dec. 2024 )(Q: Jun. 2025 )
=3.906/( (-3.145+-1.193)/ 2 )
=3.906/-2.169
=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 two times the semi-annual (Jun. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
R8 Capital Investments (LSE:MODE) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Jun. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on R8 Capital Investments and its competitors. According to the industry distribution chart, R8 Capital Investments ranks #2 out of 2469 companies in the Software industry, placing it in the top 0.099999999999994%.
Is R8 Capital Investments' Return-on-Tangible-Equity too high?
R8 Capital Investments' current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, R8 Capital Investments ranks #2 out of 2469 companies in the Software industry, which is in the top quartile — a strong position relative to peers.
How does R8 Capital Investments' Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, R8 Capital Investments ranks #2 out of 2469 companies for Return-on-Tangible-Equity. This places R8 Capital Investments in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.62. 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.62, based on 2,469 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 R8 Capital Investments and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. R8 Capital Investments's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is R8 Capital Investments stock overvalued right now?
R8 Capital Investments (LSE:MODE) has a current Return-on-Tangible-Equity of Negative Tangible Equity%. The current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 R8 Capital Investments (LSE:MODE), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Jun. 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.

R8 Capital Investments Business Description

Address 2 Leman Street, London, GBR, E1W 9US
R8 Capital Investments PLC operates as a Cash Shell company.