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STNE (StoneCo) Return-on-Tangible-Equity : -175.96% (As of Dec. 2024)


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What is StoneCo 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. StoneCo's annualized net income for the quarter that ended in Dec. 2024 was $-1,916 Mil. StoneCo's average shareholder tangible equity for the quarter that ended in Dec. 2024 was $1,089 Mil. Therefore, StoneCo's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2024 was -175.96%.

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

STNE' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -42.01   Med: -11.37   Max: 32.46
Current: -18.6

During the past 9 years, StoneCo's highest Return-on-Tangible-Equity was 32.46%. The lowest was -42.01%. And the median was -11.37%.

STNE's Return-on-Tangible-Equity is ranked worse than
80.31% of 2418 companies
in the Software industry
Industry Median: 8.95 vs STNE: -18.60

StoneCo Return-on-Tangible-Equity Historical Data

The historical data trend for StoneCo'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.

StoneCo Return-on-Tangible-Equity Chart

StoneCo Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only 8.20 -13.29 -11.37 32.46 -22.33

StoneCo Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 46.67 24.69 30.71 33.84 -175.96

Competitive Comparison of StoneCo's Return-on-Tangible-Equity

For the Software - Infrastructure subindustry, StoneCo'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.


StoneCo's Return-on-Tangible-Equity Distribution in the Software Industry

For the Software industry and Technology sector, StoneCo's Return-on-Tangible-Equity distribution charts can be found below:

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


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StoneCo Return-on-Tangible-Equity Calculation

StoneCo'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 )
=-248.356/( (1189.302+1035.549 )/ 2 )
=-248.356/1112.4255
=-22.33 %

StoneCo's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2024 )  (Q: Sep. 2024 )(Q: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2024 )  (Q: Sep. 2024 )(Q: Dec. 2024 )
=-1915.62/( (1141.782+1035.549)/ 2 )
=-1915.62/1088.6655
=-175.96 %

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


StoneCo  (NAS:STNE) 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.


StoneCo Return-on-Tangible-Equity Related Terms

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


StoneCo Business Description

Industry
Traded in Other Exchanges
Address
103 South Church Street, 4th Floor, Harbour Place, P.O. Box 10240, Grand Cayman, CYM, KY1-1002
StoneCo Ltd is a provider of financial technology solutions. It serves MSMBs great solutions, at fair prices, and provides the customer experience to help them manage their businesses and sell more. Its Stone Business Model combines end-to-end, cloud-based technology platforms; differentiated hyper-local and integrated distribution approaches; and white-glove, on-demand customer service. It has two segments Financial Services offers payments, digital banking, and credit solutions, focusing Ton solution mainly on micro-merchants, and Stone solution on SMBs. In Software, it offers POS and ERP solutions for different retail and services verticals, Customer Relationship Management, engagement tools, e-commerce, and Order Management System solutions, among others.