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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. NextGen Acquisition II's annualized net income for the quarter that ended in Sep. 2021 was $11.25 Mil. NextGen Acquisition II's average shareholder tangible equity for the quarter that ended in Sep. 2021 was $339.00 Mil. Therefore, NextGen Acquisition II's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2021 was 3.32%.
The historical rank and industry rank for NextGen Acquisition II's Return-on-Tangible-Equity or its related term are showing as below:
NGCAW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.7 Med: 0 Max: 0
Current: -2.7
NGCAW's Return-on-Tangible-Equity is not ranked
in the Diversified Financial Services industry.
Industry Median: 1.65
vs NGCAW: -2.70
NextGen Acquisition II (NAS:NGCAW) 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.
NextGen Acquisition II Return-on-Tangible-Equity Related Terms
NextGen Acquisition II Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NextGen Acquisition II'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.
NextGen Acquisition II Return-on-Tangible-Equity Chart
NextGen Acquisition II Annual Data
Trend
Return-on-Tangible-Equity
NextGen Acquisition II Semi-Annual Data
Jan21
Mar21
Jun21
Sep21
Return-on-Tangible-Equity
0.00
-0.41
-5.30
3.32
NGCAW vs : Return-on-Tangible-Equity Comparison
For the Shell Companies subindustry, NextGen Acquisition II'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.
NextGen Acquisition II Return-on-Tangible-Equity vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, NextGen Acquisition II's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NextGen Acquisition II'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 one times the annual (Sep. 2021) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 3.32% mean?
NextGen Acquisition II (NGCAW) has a Return-on-Tangible-Equity of 3.32% as of Sep. 2021. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NextGen Acquisition II and its competitors.
Is NextGen Acquisition II's Return-on-Tangible-Equity too high?
NextGen Acquisition II's current Return-on-Tangible-Equity is 3.32%. The Diversified Financial Services industry median Return-on-Tangible-Equity is 1.65. NextGen Acquisition II's value of 3.32% is 101.2% above this industry median.
How does NextGen Acquisition II's Return-on-Tangible-Equity compare to ?
NextGen Acquisition II's Return-on-Tangible-Equity of 3.32% can be compared against companies in the Diversified Financial Services industry. The industry median Return-on-Tangible-Equity is 1.65. NextGen Acquisition II's value of 3.32% is 101.2% above this benchmark. 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 Diversified Financial Services company?
The median Return-on-Tangible-Equity among Diversified Financial Services companies is 1.65, based on 477 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. NextGen Acquisition II's current Return-on-Tangible-Equity of 3.32% is 101.2% above the industry median. 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 NextGen Acquisition II and its competitors. For the Diversified Financial Services industry, the median Return-on-Tangible-Equity is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NextGen Acquisition II's current Return-on-Tangible-Equity is 3.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NextGen Acquisition II stock overvalued right now?
NextGen Acquisition II (NGCAW) has a current Return-on-Tangible-Equity of 3.32%. The current Return-on-Tangible-Equity is 3.32% and 101.2% above the Diversified Financial Services industry median of 1.65. 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 NextGen Acquisition II (NGCAW), the current Return-on-Tangible-Equity is 3.32% as of Sep. 2021. 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.
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