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Houlihan Lokey (STU:2HL) Return-on-Tangible-Equity : 76.53% (As of Mar. 2025)


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What is Houlihan Lokey 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. Houlihan Lokey's annualized net income for the quarter that ended in Mar. 2025 was €451 Mil. Houlihan Lokey's average shareholder tangible equity for the quarter that ended in Mar. 2025 was €589 Mil. Therefore, Houlihan Lokey's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 76.53%.

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

STU:2HL' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 67.21   Med: 134.53   Max: 244.76
Current: 71.23

During the past 12 years, Houlihan Lokey's highest Return-on-Tangible-Equity was 244.76%. The lowest was 67.21%. And the median was 134.53%.

STU:2HL's Return-on-Tangible-Equity is ranked better than
93.96% of 762 companies
in the Capital Markets industry
Industry Median: 6.195 vs STU:2HL: 71.23

Houlihan Lokey Return-on-Tangible-Equity Historical Data

The historical data trend for Houlihan Lokey'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.

Houlihan Lokey Return-on-Tangible-Equity Chart

Houlihan Lokey Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 89.09 144.82 114.37 66.83 67.37

Houlihan Lokey 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 68.19 73.94 71.12 67.60 76.53

Competitive Comparison of Houlihan Lokey's Return-on-Tangible-Equity

For the Capital Markets subindustry, Houlihan Lokey'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.


Houlihan Lokey's Return-on-Tangible-Equity Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Houlihan Lokey's Return-on-Tangible-Equity distribution charts can be found below:

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


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Houlihan Lokey Return-on-Tangible-Equity Calculation

Houlihan Lokey's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=369.733/( (470.869+626.796 )/ 2 )
=369.733/548.8325
=67.37 %

Houlihan Lokey'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 )
=451.104/( (552.109+626.796)/ 2 )
=451.104/589.4525
=76.53 %

* 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.


Houlihan Lokey  (STU:2HL) 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.


Houlihan Lokey Return-on-Tangible-Equity Related Terms

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Houlihan Lokey Business Description

Traded in Other Exchanges
Address
10250 Constellation Boulevard, 5th Floor, Los Angeles, CA, USA, 90067
Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.

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