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LHV Group AS (OTSE:LHV1T) Return-on-Tangible-Equity : 17.27% (As of Mar. 2025)


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What is LHV Group AS 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. LHV Group AS's annualized net income for the quarter that ended in Mar. 2025 was €114.3 Mil. LHV Group AS's average shareholder tangible equity for the quarter that ended in Mar. 2025 was €661.9 Mil. Therefore, LHV Group AS's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 17.27%.

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

OTSE:LHV1T' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.64   Med: 21.19   Max: 30.55
Current: 22.28

During the past 12 years, LHV Group AS's highest Return-on-Tangible-Equity was 30.55%. The lowest was 15.64%. And the median was 21.19%.

OTSE:LHV1T's Return-on-Tangible-Equity is ranked better than
91.38% of 1577 companies
in the Banks industry
Industry Median: 10.22 vs OTSE:LHV1T: 22.28

LHV Group AS Return-on-Tangible-Equity Historical Data

The historical data trend for LHV Group AS'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.

LHV Group AS Return-on-Tangible-Equity Chart

LHV Group AS Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.95 22.45 17.35 30.55 25.41

LHV Group AS Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 29.65 26.85 23.28 22.76 17.27

Competitive Comparison of LHV Group AS's Return-on-Tangible-Equity

For the Banks - Regional subindustry, LHV Group AS'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.


LHV Group AS's Return-on-Tangible-Equity Distribution in the Banks Industry

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

* The bar in red indicates where LHV Group AS's Return-on-Tangible-Equity falls into.


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LHV Group AS Return-on-Tangible-Equity Calculation

LHV Group AS'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 )
=148.968/( (525.437+646.895 )/ 2 )
=148.968/586.166
=25.41 %

LHV Group AS's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=114.272/( (646.895+676.806)/ 2 )
=114.272/661.8505
=17.27 %

* 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. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


LHV Group AS  (OTSE:LHV1T) 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.


LHV Group AS Return-on-Tangible-Equity Related Terms

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


LHV Group AS Business Description

Traded in Other Exchanges
Address
Tartu mnt 2, Tallinn, EST, 10145
LHV Group AS operates as a holding company. The company provides banking, security brokerage, financial advisory, finance leases and other lending services in Estonia. The company operates in the below segments namely LHV Pank, LHV Bank, LHV Varahaldus, LHV, Kindlustus and Other activities. LHV Pank segment, which derives maximum revenue includes banking activities and hire-purchase and consumer finance offering in Estonia and its products are different kinds of credit and payments. Geographically, it operates in Estonia, Switzerland, Latvia, United Kingdom, Germany, United States, Portugal, Lithuania, Finland, Russian Federation, and Others.

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