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Funding Circle Holdings (LSE:FCH) Return-on-Tangible-Equity : -17.58% (As of Dec. 2023)


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What is Funding Circle Holdings 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. Funding Circle Holdings's annualized net income for the quarter that ended in Dec. 2023 was £-40.4 Mil. Funding Circle Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2023 was £229.8 Mil. Therefore, Funding Circle Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was -17.58%.

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

LSE:FCH' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -64.28   Med: -27.27   Max: 26.82
Current: -16.06

During the past 9 years, Funding Circle Holdings's highest Return-on-Tangible-Equity was 26.82%. The lowest was -64.28%. And the median was -27.27%.

LSE:FCH's Return-on-Tangible-Equity is ranked worse than
91.05% of 503 companies
in the Credit Services industry
Industry Median: 6.9 vs LSE:FCH: -16.06

Funding Circle Holdings Return-on-Tangible-Equity Historical Data

The historical data trend for Funding Circle Holdings'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.

Funding Circle Holdings Return-on-Tangible-Equity Chart

Funding Circle Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only -27.27 -45.38 26.82 -2.66 -15.97

Funding Circle Holdings Semi-Annual Data
Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 22.52 5.31 -10.61 -14.73 -17.58

Competitive Comparison of Funding Circle Holdings's Return-on-Tangible-Equity

For the Credit Services subindustry, Funding Circle Holdings'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.


Funding Circle Holdings's Return-on-Tangible-Equity Distribution in the Credit Services Industry

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

* The bar in red indicates where Funding Circle Holdings's Return-on-Tangible-Equity falls into.



Funding Circle Holdings Return-on-Tangible-Equity Calculation

Funding Circle Holdings'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 )
=-38.3/( (255.8+223.8 )/ 2 )
=-38.3/239.8
=-15.97 %

Funding Circle Holdings'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: Jun. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=-40.4/( (235.8+223.8)/ 2 )
=-40.4/229.8
=-17.58 %

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


Funding Circle Holdings  (LSE:FCH) 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.


Funding Circle Holdings Return-on-Tangible-Equity Related Terms

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


Funding Circle Holdings (LSE:FCH) Business Description

Traded in Other Exchanges
Address
71 Queen Victoria Street, London, GBR, EC4V 4AY
Funding Circle Holdings PLC provides an online lending platform through which borrower loans are originated and allocated to investors and comprising the different online lending platforms across the company's geographies. The company's geographical segments include the United Kingdom, the United States, and developing markets. It derives the majority of its revenue from the United Kingdom region.

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