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Diversified Royalty (TSX:DIV) Return-on-Tangible-Equity : Negative Tangible Equity% (As of Mar. 2025)


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What is Diversified Royalty 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. Diversified Royalty's annualized net income for the quarter that ended in Mar. 2025 was C$31.97 Mil. Diversified Royalty's average shareholder tangible equity for the quarter that ended in Mar. 2025 was C$-221.82 Mil. Therefore, Diversified Royalty's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was Negative Tangible Equity%.

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

TSX:DIV' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 170.06   Med: 170.06   Max: 170.06
Current: Negative Tangible Equity

During the past 13 years, Diversified Royalty's highest Return-on-Tangible-Equity was 170.06%. The lowest was 170.06%. And the median was 170.06%.

TSX:DIV's Return-on-Tangible-Equity is ranked better than
99.9% of 989 companies
in the Business Services industry
Industry Median: 11.19 vs TSX:DIV: Negative Tangible Equity

Diversified Royalty Return-on-Tangible-Equity Historical Data

The historical data trend for Diversified Royalty'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.

Diversified Royalty Return-on-Tangible-Equity Chart

Diversified Royalty 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 - Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Diversified Royalty 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 Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Competitive Comparison of Diversified Royalty's Return-on-Tangible-Equity

For the Specialty Business Services subindustry, Diversified Royalty'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.


Diversified Royalty's Return-on-Tangible-Equity Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Diversified Royalty's Return-on-Tangible-Equity distribution charts can be found below:

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


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Diversified Royalty Return-on-Tangible-Equity Calculation

Diversified Royalty'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 )
=26.619/( (-274.085+-221.333 )/ 2 )
=26.619/-247.709
=Negative Tangible Equity %

Diversified Royalty'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 )
=31.972/( (-221.333+-222.307)/ 2 )
=31.972/-221.82
=Negative Tangible Equity %

* 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.


Diversified Royalty  (TSX:DIV) 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.


Diversified Royalty Return-on-Tangible-Equity Related Terms

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


Diversified Royalty Business Description

Traded in Other Exchanges
Address
609 Granville Street, Suite 330, P.O. Box 10033, Vancouver, BC, CAN, V7Y 1A1
Diversified Royalty Corp is a multi-royalty company. It is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. The firm purchases trademarks of the companies it is going to acquire. Its objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors. All of the company's operating revenues are earned from the receipt of royalties and management fees from its Royalty Partners.
Executives
Bryan Christopher Elwin Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Lawrence P. Haber Director, Senior Officer
George Melville Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Johnny Ciampi Director
Lance Tracey Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Maxam Capital Management Ltd. 10% Security Holder