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Capital One Financial (Capital One Financial) Return-on-Tangible-Equity

: 6.92% (As of Dec. 2023)
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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. Capital One Financial's annualized net income for the quarter that ended in Dec. 2023 was $2,824 Mil. Capital One Financial's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $40,822 Mil. Therefore, Capital One Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 6.92%.

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

COF' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.9   Med: 13.23   Max: 26.99
Current: 12.29

During the past 13 years, Capital One Financial's highest Return-on-Tangible-Equity was 26.99%. The lowest was 5.90%. And the median was 13.23%.

COF's Return-on-Tangible-Equity is ranked better than
68.45% of 504 companies
in the Credit Services industry
Industry Median: 7.105 vs COF: 12.29

Capital One Financial Return-on-Tangible-Equity Historical Data

The historical data trend for Capital One Financial'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.

Capital One Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.78 6.11 26.99 17.51 12.09

Capital One Financial Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Return-on-Tangible-Equity 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 Premium Member Only Premium Member Only Premium Member Only 13.34 9.89 14.42 18.33 6.92

Competitive Comparison

For the Credit Services subindustry, Capital One Financial'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.


Capital One Financial Return-on-Tangible-Equity Distribution

For the Credit Services industry and Financial Services sector, Capital One Financial's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Capital One Financial's Return-on-Tangible-Equity falls into.



Capital One Financial Return-on-Tangible-Equity Calculation

Capital One Financial's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=4887/( (37805+43024 )/ 2 )
=4887/40414.5
=12.09 %

Capital One Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=2824/( (38620+43024)/ 2 )
=2824/40822
=6.92 %

* 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 (Dec. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Capital One Financial  (NYSE:COF) 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.


Capital One Financial Return-on-Tangible-Equity Related Terms

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


Capital One Financial (Capital One Financial) Business Description

Address
1680 Capital One Drive, McLean, VA, USA, 22102
Capital One is a diversified financial services holding company headquartered in McLean, Virginia. Originally a spinoff of Signet Financial's credit card division in 1994, the company is now primarily involved in credit card lending, auto loans, and commercial lending.
Executives
Laprade,iii Frank G. officer: Chief Enterprise Srvcs Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Robert M. Alexander officer: Chief Information Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Ann F Hackett director
Richard D Fairbank director, officer: Chairman, CEO and President 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Kara West officer: Chief Audit Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Kevin S. Borgmann officer: Chief Risk Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Mark Daniel Mouadeb officer: President, U.S. Card 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Neal Blinde officer: EC, Commercial Banking 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Timothy P Golden officer: Controller 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Michael Zamsky officer: Chief Consumer Credit Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Ravi Raghu officer: Pres, Software, Intl & Sm Bus 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Sheldon Hall officer: Chief Risk Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Kaitlin Haggerty officer: Chief Human Resources Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Peter E Raskind director NATIONAL CITY CORP, 1900 EAST NINTH STREET, CLEVELAND OH 44114-3484
Matthew W Cooper officer: General Counsel 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102