Canso Select Opportunities Fund (TSX:SCW.UN) Return-on-Tangible-Equity: 1.72% (As of Jun. 2018)


What is Canso Select Opportunities Fund Return-on-Tangible-Equity?

Canso Select Opportunities Fund TSX:SCW.UN Return-on-Tangible-Equity is 1.72% as of Jun. 2018.

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. Canso Select Opportunities Fund's annualized net income for the quarter that ended in Jun. 2018 was C$0.47 Mil. Canso Select Opportunities Fund's average shareholder tangible equity for the quarter that ended in Jun. 2018 was C$27.48 Mil. Therefore, Canso Select Opportunities Fund's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2018 was 1.72%.

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

TSX:SCW.UN's Return-on-Tangible-Equity is not ranked *
in the Asset Management industry.
Industry Median: 7.12
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Canso Select Opportunities Fund  (TSX:SCW.UN) 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.

Canso Select Opportunities Fund Return-on-Tangible-Equity Related Terms

Canso Select Opportunities Fund Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Canso Select Opportunities Fund'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.

Canso Select Opportunities Fund Return-on-Tangible-Equity Chart

Canso Select Opportunities Fund Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17
Return-on-Tangible-Equity
7.72 14.00 -6.13 2.51 13.98

Canso Select Opportunities Fund Semi-Annual Data
Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only -31.04 43.68 13.99 19.69 1.72

Canso Select Opportunities Fund Return-on-Tangible-Equity Competitor Comparison

For the Asset Management subindustry, Canso Select Opportunities Fund'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.

Canso Select Opportunities Fund Return-on-Tangible-Equity vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Canso Select Opportunities Fund's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Canso Select Opportunities Fund's Return-on-Tangible-Equity falls into.


Canso Select Opportunities Fund Return-on-Tangible-Equity Calculation

Canso Select Opportunities Fund's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2017 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2017 )  (A: Dec. 2016 )(A: Dec. 2017 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2017 )  (A: Dec. 2016 )(A: Dec. 2017 )
=7.3/( (64.951+39.468 )/ 2 )
=7.3/52.2095
=13.98 %

Canso Select Opportunities Fund's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2018 )  (Q: Dec. 2017 )(Q: Jun. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2018 )  (Q: Dec. 2017 )(Q: Jun. 2018 )
=0.474/( (39.468+15.496)/ 2 )
=0.474/27.482
=1.72 %

* 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 two times the semi-annual (Jun. 2018) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 1.72% mean?
Canso Select Opportunities Fund (TSX:SCW.UN) has a Return-on-Tangible-Equity of 1.72% as of Jun. 2018. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Canso Select Opportunities Fund and its competitors.
Is Canso Select Opportunities Fund's Return-on-Tangible-Equity too high?
Canso Select Opportunities Fund's current Return-on-Tangible-Equity is 1.72%. The Asset Management industry median Return-on-Tangible-Equity is 7.12. Canso Select Opportunities Fund's value of 1.72% is 75.8% below this industry median.
How does Canso Select Opportunities Fund's Return-on-Tangible-Equity compare to competitors?
Canso Select Opportunities Fund's Return-on-Tangible-Equity of 1.72% can be compared against companies in the Asset Management industry. The industry median Return-on-Tangible-Equity is 7.12. Canso Select Opportunities Fund's value of 1.72% is 75.8% below this benchmark. 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 Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.12, based on 1,590 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. Canso Select Opportunities Fund's current Return-on-Tangible-Equity of 1.72% is 75.8% below the industry median. 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 Canso Select Opportunities Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canso Select Opportunities Fund's current Return-on-Tangible-Equity is 1.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canso Select Opportunities Fund stock overvalued right now?
Canso Select Opportunities Fund (TSX:SCW.UN) has a current Return-on-Tangible-Equity of 1.72%. The current Return-on-Tangible-Equity is 1.72% and 75.8% below the Asset Management industry median of 7.12. 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 Canso Select Opportunities Fund (TSX:SCW.UN), the current Return-on-Tangible-Equity is 1.72% as of Jun. 2018. 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.

Canso Select Opportunities Fund Business Description

Address 4000 - 3080 Yonge Street, Toronto, ON, CAN, M4N 3N1
Canso Select Opportunities Fund is a Canadian closed-end investment fund which seeks to maximize total returns for unitholders and provide attractive monthly cash distributions. The fund invests in an actively managed and diversified portfolio of corporate bonds and equities. The revenue generated by the company includes interest, dividend, accrued interest, income on investment and other income.