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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. Prime Life Insurance Co's annualized net income for the quarter that ended in Jan. 2023 was NPR4,597 Mil. Prime Life Insurance Co's average shareholder tangible equity for the quarter that ended in Jan. 2023 was NPR23,929 Mil. Therefore, Prime Life Insurance Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2023 was 19.21%.
The historical rank and industry rank for Prime Life Insurance Co's Return-on-Tangible-Equity or its related term are showing as below:
XNEP:PLIC's Return-on-Tangible-Equity is not ranked *
in the Insurance industry.
Industry Median: 13.5 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Prime Life Insurance Co (XNEP:PLIC) 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.
Prime Life Insurance Co Return-on-Tangible-Equity Related Terms
Prime Life Insurance Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Prime Life Insurance Co'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.
Prime Life Insurance Co Return-on-Tangible-Equity Chart
XNEP:PLIC vs MET, PRU, AFL: Return-on-Tangible-Equity Comparison
For the Insurance - Life subindustry, Prime Life Insurance Co'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.
Prime Life Insurance Co Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Prime Life Insurance Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Prime Life Insurance Co's Return-on-Tangible-Equity falls into.
* 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. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.21% mean?
Prime Life Insurance Co (XNEP:PLIC) has a Return-on-Tangible-Equity of 19.21% as of Jan. 2023. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Prime Life Insurance Co and its competitors.
Is Prime Life Insurance Co's Return-on-Tangible-Equity too high?
Prime Life Insurance Co's current Return-on-Tangible-Equity is 19.21%. The Insurance industry median Return-on-Tangible-Equity is 13.50. Prime Life Insurance Co's value of 19.21% is 42.3% above this industry median. Overall, Prime Life Insurance Co has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Prime Life Insurance Co's Return-on-Tangible-Equity compare to MET and PRU?
Prime Life Insurance Co's Return-on-Tangible-Equity of 19.21% can be compared against companies in the Insurance industry. The industry median Return-on-Tangible-Equity is 13.50. Prime Life Insurance Co's value of 19.21% is 42.3% above 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 Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.50, based on 497 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. Prime Life Insurance Co's current Return-on-Tangible-Equity of 19.21% is 42.3% above 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 Prime Life Insurance Co and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prime Life Insurance Co's current Return-on-Tangible-Equity is 19.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prime Life Insurance Co stock overvalued right now?
Prime Life Insurance Co (XNEP:PLIC) has a current Return-on-Tangible-Equity of 19.21%. The current Return-on-Tangible-Equity is 19.21% and 42.3% above the Insurance industry median of 13.50. Prime Life Insurance Co's overall GF Score™ is 21/100. 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 Prime Life Insurance Co (XNEP:PLIC), the current Return-on-Tangible-Equity is 19.21% as of Jan. 2023. 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.
Prime Life Insurance Co Ltd provides life insurance products and services in Nepal. The company's operating segment includes Endowment; Anticipated Endowment; Endowment Cum Whole Life; Whole Life; Without Profit Endowment; Foreign Employment Term; Other Term; Special Term and others. It generates maximum revenue from the Endowment segment.
21GF Score
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