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Aye FinanceNSE:AYE +1.19%14 Return-on-Tangible-Equity is 12.15% as of Mar. 2026, which is 31% above its 10-year median of 9.26. GuruFocus rates NSE:AYE with a GF Score™ of 14/100. The stock has 8 warning signs investors should review. Among 525 Credit Services companies, Aye Finance ranks better than 60.57% 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. Aye Finance's annualized net income for the quarter that ended in Mar. 2026 was ₹2,581 Mil. Aye Finance's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹21,245 Mil. Therefore, Aye Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.15%.
The historical rank and industry rank for Aye Finance's Return-on-Tangible-Equity or its related term are showing as below:
NSE:AYE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.29 Med: 9.26 Max: 17.33
Current: 9.84
During the past 5 years, Aye Finance's highest Return-on-Tangible-Equity was 17.33%. The lowest was -7.29%. And the median was 9.26%.
NSE:AYE's Return-on-Tangible-Equity is ranked better than 60.57% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs NSE:AYE: 9.84
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.
Aye Finance Return-on-Tangible-Equity Related Terms
Aye Finance Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Aye Finance'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.
NSE:AYE vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Aye Finance'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.
Aye Finance Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Aye Finance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Aye Finance'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.15% mean?
Aye Finance (NSE:AYE) has a Return-on-Tangible-Equity of 12.15% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Aye Finance and its competitors. This is 31% above median its historical median of 9.26. According to the industry distribution chart, Aye Finance ranks #207 out of 525 companies in the Credit Services industry, placing it in the top 39.4%.
Is Aye Finance's Return-on-Tangible-Equity too high?
Aye Finance's current Return-on-Tangible-Equity of 12.15% is 31% above median its 10-year median of 9.26. The Credit Services industry median Return-on-Tangible-Equity is 7.01. Aye Finance's value of 12.15% is 73.3% above this industry median. Based on the distribution chart, Aye Finance ranks #207 out of 525 companies in the Credit Services industry, which is above the industry midpoint. Overall, Aye Finance has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Aye Finance's Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Aye Finance ranks #207 out of 525 companies for Return-on-Tangible-Equity. This puts Aye Finance in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.01. Aye Finance's value of 12.15% is 73.3% above this benchmark. While the company's 10-year median is 9.26 vs. the industry median of 7.01, Aye Finance has consistently been above the industry average. 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 Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 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. Aye Finance's current Return-on-Tangible-Equity of 12.15% is 73.3% 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 Aye Finance and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aye Finance's current Return-on-Tangible-Equity is 12.15%, which is 31% above median its own 10-year median of 9.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aye Finance stock overvalued right now?
Aye Finance (NSE:AYE) has a current Return-on-Tangible-Equity of 12.15%. The current Return-on-Tangible-Equity is 12.15%, which is 31% above median its 10-year median of 9.26 and 73.3% above the Credit Services industry median of 7.01. Aye Finance's overall GF Score™ is 14/100 with 8 warning signs to review. 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 Aye Finance (NSE:AYE), the current Return-on-Tangible-Equity is 12.15% as of Mar. 2026. 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.
Aye Finance Ltd is a non-banking financial company - middle layer (NBFC-ML) focused on providing loans to micro, small and medium enterprises (MSMEs) across India. It offers a range of business loans for working capital and business expansion needs, against hypothecation of working assets or against security of property to customers across manufacturing, trading, service and allied agriculture sectors. The company operates in a single reportable segment i.e. granting loans, which has similar risks and returns. The company's offerings include Mortgage Loans, Property Loans, Secured Hypothecation Loans, and Unsecured Hypothecation Loans. Geographically, it operates across India.
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