What is Legal & General Group 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. Legal & General Group's annualized net income for the quarter that ended in Dec. 2023 was £282 Mil. Legal & General Group's average shareholder tangible equity for the quarter that ended in Dec. 2023 was £4,420 Mil. Therefore, Legal & General Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 6.38%.
The historical rank and industry rank for Legal & General Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:LGEN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.8 Med: 19.06 Max: 28.04
Current: 9.87
During the past 13 years, Legal & General Group's highest Return-on-Tangible-Equity was 28.04%. The lowest was 9.80%. And the median was 19.06%.
LSE:LGEN's Return-on-Tangible-Equity is ranked better than 66.53% of 1676
companies
in the Asset Management industry
Industry Median: 5.025
vs LSE:LGEN: 9.87
Legal & General Group Return-on-Tangible-Equity Historical Data
The historical data trend for Legal & General Group'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.
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Legal & General Group Return-on-Tangible-Equity Chart
Competitive Comparison of Legal & General Group's Return-on-Tangible-Equity
For the Asset Management subindustry, Legal & General Group'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.
Legal & General Group's Return-on-Tangible-Equity Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Legal & General Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Legal & General Group's Return-on-Tangible-Equity falls into.
Legal & General Group Return-on-Tangible-Equity Calculation
Legal & General Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
Legal & General Group (LSE:LGEN) 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.
Legal & General Group Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Legal & General Group's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Legal & General Group (LSE:LGEN) Business Description
Legal & General Group PLC operates across four broad business areas of retirement, investment management, capital investment, and insurance. The retirement business provides provide guaranteed retirement income for corporate pension scheme members. Investment Management business provides investment management services for both individuals and corporations, including managing pension funds. Capital investment use customers' pension assets, as well as the group's shareholder capital, to make long-term investments in assets such as clean energy, housing, and SME finance. The Insurance business provides various types of insurance, including life and disability insurance. The company has a global presence but most of its assets under management are derived from the United Kingdom and Europe.
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