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The historical rank and industry rank for Rural Microfinance Development Centre's Return-on-Tangible-Equity or its related term are showing as below:
XNEP:RMDC's Return-on-Tangible-Equity is not ranked *
in the Credit Services industry.
Industry Median: 7.05 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Rural Microfinance Development Centre (XNEP:RMDC) 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.
Rural Microfinance Development Centre Return-on-Tangible-Equity Related Terms
Rural Microfinance Development Centre Return-on-Tangible-Equity Historical Data
* 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.
Rural Microfinance Development Centre Return-on-Tangible-Equity Chart
XNEP:RMDC vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Rural Microfinance Development Centre'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.
Rural Microfinance Development Centre Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Rural Microfinance Development Centre's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rural Microfinance Development Centre'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 (Apr. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.60% mean?
Rural Microfinance Development Centre (XNEP:RMDC) has a Return-on-Tangible-Equity of 7.60% as of Apr. 2023. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rural Microfinance Development Centre and its competitors.
Is Rural Microfinance Development Centre's Return-on-Tangible-Equity too high?
Rural Microfinance Development Centre's current Return-on-Tangible-Equity is 7.60%. The Credit Services industry median Return-on-Tangible-Equity is 7.05. Rural Microfinance Development Centre's value of 7.60% is 7.8% above this industry median. Overall, Rural Microfinance Development Centre has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Rural Microfinance Development Centre's Return-on-Tangible-Equity compare to V and MA?
Rural Microfinance Development Centre's Return-on-Tangible-Equity of 7.60% can be compared against companies in the Credit Services industry. The industry median Return-on-Tangible-Equity is 7.05. Rural Microfinance Development Centre's value of 7.60% is 7.8% 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 a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.05, based on 527 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. Rural Microfinance Development Centre's current Return-on-Tangible-Equity of 7.60% is 7.8% 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 Rural Microfinance Development Centre and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rural Microfinance Development Centre's current Return-on-Tangible-Equity is 7.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rural Microfinance Development Centre stock overvalued right now?
Rural Microfinance Development Centre (XNEP:RMDC) has a current Return-on-Tangible-Equity of 7.60%. The current Return-on-Tangible-Equity is 7.60% and 7.8% above the Credit Services industry median of 7.05. Rural Microfinance Development Centre's overall GF Score™ is 16/100. 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 Rural Microfinance Development Centre (XNEP:RMDC), the current Return-on-Tangible-Equity is 7.60% as of Apr. 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.
Rural Microfinance Development Centre Business Description
Rural Microfinance Development Centre Ltd offers wholesale lending to microfinance institutions. Besides, it has been extending institutional capacity building supports to microfinance institutions. The company's completed projects include Rural Microfinance Project and Community Livestock Development Project (CLDP). Its ongoing include Community Irrigation Project and YUWAccess Project.
16GF Score
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