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Lumbini Finance (XNEP:LFLC) Return-on-Tangible-Equity : 17.42% (As of Jan. 2018)


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What is Lumbini Finance 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. Lumbini Finance's annualized net income for the quarter that ended in Jan. 2018 was NPR510.6 Mil. Lumbini Finance's average shareholder tangible equity for the quarter that ended in Jan. 2018 was NPR2,931.0 Mil. Therefore, Lumbini Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2018 was 17.42%.

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

XNEP:LFLC's Return-on-Tangible-Equity is not ranked *
in the Banks industry.
Industry Median: 10.78
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Lumbini Finance Return-on-Tangible-Equity Historical Data

The historical data trend for Lumbini Finance'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.

Lumbini Finance Return-on-Tangible-Equity Chart

Lumbini Finance Annual Data
Trend Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16
Return-on-Tangible-Equity
Get a 7-Day Free Trial 17.67 6.93 6.63 11.14 25.46

Lumbini Finance Quarterly Data
Jul12 Jan13 Apr13 Jul13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Oct17 Jan18
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 16.12 37.27 -27.05 3.52 17.42

Competitive Comparison of Lumbini Finance's Return-on-Tangible-Equity

For the Banks - Regional subindustry, Lumbini Finance'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.


Lumbini Finance's Return-on-Tangible-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Lumbini Finance's Return-on-Tangible-Equity distribution charts can be found below:

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



Lumbini Finance Return-on-Tangible-Equity Calculation

Lumbini Finance's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jul. 2016 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jul. 2016 )  (A: Jul. 2015 )(A: Jul. 2016 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jul. 2016 )  (A: Jul. 2015 )(A: Jul. 2016 )
=174.382/( (601.443+768.457 )/ 2 )
=174.382/684.95
=25.46 %

Lumbini Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jan. 2018 )  (Q: Oct. 2017 )(Q: Jan. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jan. 2018 )  (Q: Oct. 2017 )(Q: Jan. 2018 )
=510.6/( (2842.736+3019.317)/ 2 )
=510.6/2931.0265
=17.42 %

* 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 (Jan. 2018) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Lumbini Finance  (XNEP:LFLC) 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.


Lumbini Finance Return-on-Tangible-Equity Related Terms

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


Lumbini Finance (XNEP:LFLC) Business Description

Traded in Other Exchanges
N/A
Address
Thamel, Kathmandu, NPL
Lumbini Finance Ltd is engaged in providing deposits and loan products. It offers saving deposits, fixed deposit, call deposit, provident fund, hire purchase, housing and term loan, project and personal loan and sector loan.

Lumbini Finance (XNEP:LFLC) Headlines

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