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Merchants Bancorp (Merchants Bancorp) Return-on-Tangible-Equity : 22.31% (As of Mar. 2024)


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What is Merchants Bancorp 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. Merchants Bancorp's annualized net income for the quarter that ended in Mar. 2024 was $348.22 Mil. Merchants Bancorp's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $1,561.07 Mil. Therefore, Merchants Bancorp's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 22.31%.

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

MBINO.PFD' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.53   Med: 24.41   Max: 30.81
Current: 21.27

During the past 9 years, Merchants Bancorp's highest Return-on-Tangible-Equity was 30.81%. The lowest was 17.53%. And the median was 24.41%.

MBINO.PFD's Return-on-Tangible-Equity is ranked better than
87.7% of 1455 companies
in the Banks industry
Industry Median: 10.7 vs MBINO.PFD: 21.27

Merchants Bancorp Return-on-Tangible-Equity Historical Data

The historical data trend for Merchants Bancorp'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.

Merchants Bancorp Return-on-Tangible-Equity Chart

Merchants Bancorp Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only 17.53 28.44 26.14 18.91 19.79

Merchants Bancorp Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 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 16.64 19.06 22.88 20.80 22.31

Competitive Comparison of Merchants Bancorp's Return-on-Tangible-Equity

For the Banks - Regional subindustry, Merchants Bancorp'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.


Merchants Bancorp's Return-on-Tangible-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Merchants Bancorp's Return-on-Tangible-Equity distribution charts can be found below:

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



Merchants Bancorp Return-on-Tangible-Equity Calculation

Merchants Bancorp'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 )
=279.234/( (1296.46+1526.04 )/ 2 )
=279.234/1411.25
=19.79 %

Merchants Bancorp'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: Dec. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=348.216/( (1526.04+1596.105)/ 2 )
=348.216/1561.0725
=22.31 %

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


Merchants Bancorp  (NAS:MBINO.PFD) 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.


Merchants Bancorp Return-on-Tangible-Equity Related Terms

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


Merchants Bancorp (Merchants Bancorp) Business Description

Address
410 Monon Boulevard, Carmel, IN, USA, 46032
Merchants Bancorp is a United States based bank holding company. It operates multiple lines of business focusing on FHA (Federal Housing Administration) multi-family housing and healthcare facility financing and servicing, retail and correspondent residential mortgage banking, traditional community banking. The business segments of the company are: Multi-family Mortgage Banking which originates and services government-sponsored mortgages for multi-family and healthcare facilities; Mortgage Warehousing segment which funds agency-eligible residential loans as well as commercial loans to nondepository financial institutions; and Banking segment that provides a wide range of financial products and services to consumers and businesses, including commercial and other consumer loan products.