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. Merit Group's annualized net income for the quarter that ended in Sep. 2023 was £0.71 Mil. Merit Group's average shareholder tangible equity for the quarter that ended in Sep. 2023 was £-2.72 Mil. Therefore, Merit Group's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2023 was Negative Tangible Equity%.
The historical rank and industry rank for Merit Group's Return-on-Tangible-Equity or its related term are showing as below:
During the past 13 years, Merit Group's highest Return-on-Tangible-Equity was 48.90%. The lowest was -314.98%. And the median was 18.46%.
LSE:MRIT's Return-on-Tangible-Equity is not ranked *
in the Software industry.
Industry Median: 7.82 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Merit Group Return-on-Tangible-Equity Historical Data
The historical data trend for Merit Group'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.
Competitive Comparison of Merit Group's Return-on-Tangible-Equity
For the Information Technology Services subindustry, Merit 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.
Merit Group's Return-on-Tangible-Equity Distribution in the Software Industry
For the Software industry and Technology sector, Merit Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Merit Group's Return-on-Tangible-Equity falls into.
Merit Group Return-on-Tangible-Equity Calculation
Merit Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2023 is calculated as
* 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 (Sep. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Merit Group (LSE:MRIT) 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.
Merit Group Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Merit Group's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Merit Group PLC provides data, business, and political intelligence. The group operates through two operating segments namely, Dods and Merit Data and Technology. Dods business segment concentrates on the provision of key information and insights into the political and public policy environments around the UK and the European Union. The Merit Data and Technology segment focuses on the fields of data engineering, machine learning, and artificial intelligence. The company generates the majority of its revenue from Merit Data & Technology segment.
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