SONC (Sonic Lighting) Return-on-Tangible-Equity: -18.78% (As of Sep. 2025)

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What is Sonic Lighting Return-on-Tangible-Equity?

Sonic Lighting SONC Return-on-Tangible-Equity is -18.78% as of Sep. 2025.

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. Sonic Lighting's annualized net income for the quarter that ended in Sep. 2025 was $-1.77 Mil. Sonic Lighting's average shareholder tangible equity for the quarter that ended in Sep. 2025 was $9.41 Mil. Therefore, Sonic Lighting's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 was -18.78%.

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

SONC's Return-on-Tangible-Equity is not ranked *
in the Industrial Products industry.
Industry Median: 7.155
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Sonic Lighting  (NAS:SONC) 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.


Sonic Lighting Return-on-Tangible-Equity Related Terms


Sonic Lighting Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Sonic Lighting'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.

Sonic Lighting Return-on-Tangible-Equity Chart

Sonic Lighting Annual Data
Trend Dec23 Dec24
Return-on-Tangible-Equity
24.83 28.21

Sonic Lighting Quarterly Data
Dec23 Sep24 Dec24 Jun25 Sep25
Return-on-Tangible-Equity 0.00 -0.64 20.09 0.00 -18.78

SONC vs : Return-on-Tangible-Equity Comparison

For the Electrical Equipment & Parts subindustry, Sonic Lighting'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.


Sonic Lighting Return-on-Tangible-Equity vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sonic Lighting's Return-on-Tangible-Equity distribution charts can be found below:

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



Sonic Lighting Return-on-Tangible-Equity Calculation

Sonic Lighting'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 )
=2.255/( (7.484+8.501 )/ 2 )
=2.255/7.9925
=28.21 %

Sonic Lighting's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2025 )  (Q: Jun. 2025 )(Q: Sep. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2025 )  (Q: Jun. 2025 )(Q: Sep. 2025 )
=-1.768/( (9.634+9.191)/ 2 )
=-1.768/9.4125
=-18.78 %

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

What does a Return-on-Tangible-Equity of -18.78% mean?
Sonic Lighting (SONC) has a Return-on-Tangible-Equity of -18.78% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sonic Lighting and its competitors.
Is Sonic Lighting's Return-on-Tangible-Equity too high?
Sonic Lighting's current Return-on-Tangible-Equity is -18.78%.
How does Sonic Lighting's Return-on-Tangible-Equity compare to ?
Sonic Lighting's Return-on-Tangible-Equity of -18.78% can be compared against companies in the Industrial Products industry. The industry median Return-on-Tangible-Equity is 7.16. 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 7.16, based on 2,984 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. 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 Sonic Lighting and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 7.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Lighting's current Return-on-Tangible-Equity is -18.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonic Lighting stock overvalued right now?
Sonic Lighting (SONC) has a current Return-on-Tangible-Equity of -18.78%. The current Return-on-Tangible-Equity is -18.78%. 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 Sonic Lighting (SONC), the current Return-on-Tangible-Equity is -18.78% as of Sep. 2025. 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.

Sonic Lighting Business Description

Comparable Companies
Address 19385 East Walnut Drive North, City of Industry, CA, USA, 91748
Sonic Lighting Inc operates as a wholesale distributor of automotive lighting products. The company's product range includes projector headlights, crystal headlights, taillights, and fog lights. It sources products mainly from suppliers in the United States, Hong Kong, Taiwan, and China. Sonic Lighting serves many retailers, wholesalers, and online consumers across multiple U.S. states through its distribution network, including warehouse facilities in California, South Carolina, and Texas. The company's revenues consist of agency income, fulfilment service income, online retail sales income, and wholesale income.