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. Tech Mahindra's annualized net income for the quarter that ended in Mar. 2024 was ₹26,440 Mil. Tech Mahindra's average shareholder tangible equity for the quarter that ended in Mar. 2024 was ₹163,238 Mil. Therefore, Tech Mahindra's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 16.20%.
The historical rank and industry rank for Tech Mahindra's Return-on-Tangible-Equity or its related term are showing as below:
BOM:532755'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.15 Med: 27.07 Max: 31.62
Current: 14.4
During the past 13 years, Tech Mahindra's highest Return-on-Tangible-Equity was 31.62%. The lowest was 14.15%. And the median was 27.07%.
BOM:532755's Return-on-Tangible-Equity is ranked better than 61.43% of 2380
companies
in the Software industry
Industry Median: 7.83
vs BOM:532755: 14.40
Tech Mahindra Return-on-Tangible-Equity Historical Data
The historical data trend for Tech Mahindra'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.
Competitive Comparison of Tech Mahindra's Return-on-Tangible-Equity
For the Information Technology Services subindustry, Tech Mahindra'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.
Tech Mahindra's Return-on-Tangible-Equity Distribution in the Software Industry
For the Software industry and Technology sector, Tech Mahindra's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tech Mahindra'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 (Mar. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
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.
Tech Mahindra Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Tech Mahindra's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Tech Mahindra Ltd is an IT services and consulting company in India. It offers a variety of technology solutions and services in addition to business process services. Its segments are Information Technology and Business Processing Outsourcing. The technology solutions include helping companies engage in cloud software, mobile solutions, network services, cybersecurity, and a variety of other options. The business process service is offered across various industries including telecom, financial services, retail, energy, hospitality, high-tech, agriculture, and food beverage. The company's approach includes cost reduction, process optimization, and ownership through automation and productivity improvements. Tech Mahindra generates approximately half of its revenue from the United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOM:532755 has been successfully added to your 