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Potomac Bancshares (Potomac Bancshares) Return-on-Tangible-Equity : 7.62% (As of Sep. 2018)


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What is Potomac Bancshares 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. Potomac Bancshares's annualized net income for the quarter that ended in Sep. 2018 was $3.27 Mil. Potomac Bancshares's average shareholder tangible equity for the quarter that ended in Sep. 2018 was $42.86 Mil. Therefore, Potomac Bancshares's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2018 was 7.62%.

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

PTBS's Return-on-Tangible-Equity is not ranked *
in the Banks industry.
Industry Median: 10.72
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Potomac Bancshares Return-on-Tangible-Equity Historical Data

The historical data trend for Potomac Bancshares'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.

Potomac Bancshares Return-on-Tangible-Equity Chart

Potomac Bancshares Annual Data
Trend Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.67 6.55 -8.39 6.85 -3.87

Potomac Bancshares Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Mar14 Jun14 Sep14 Mar15 Jun15 Sep15 Mar16 Jun16 Sep16 Mar17 Jun17 Sep17 Mar18 Jun18 Sep18
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.47 10.80 10.02 10.98 7.62

Competitive Comparison of Potomac Bancshares's Return-on-Tangible-Equity

For the Banks - Regional subindustry, Potomac Bancshares'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.


Potomac Bancshares's Return-on-Tangible-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Potomac Bancshares's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Potomac Bancshares's Return-on-Tangible-Equity falls into.



Potomac Bancshares Return-on-Tangible-Equity Calculation

Potomac Bancshares's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2011 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2011 )  (A: Dec. 2010 )(A: Dec. 2011 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2011 )  (A: Dec. 2010 )(A: Dec. 2011 )
=-1.01/( (26.776+25.465 )/ 2 )
=-1.01/26.1205
=-3.87 %

Potomac Bancshares's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2018 )  (Q: Jun. 2018 )(Q: Sep. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2018 )  (Q: Jun. 2018 )(Q: Sep. 2018 )
=3.268/( (37.044+48.684)/ 2 )
=3.268/42.864
=7.62 %

* 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 (Sep. 2018) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Potomac Bancshares  (OTCPK:PTBS) 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.


Potomac Bancshares Return-on-Tangible-Equity Related Terms

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Potomac Bancshares (Potomac Bancshares) Business Description

Traded in Other Exchanges
N/A
Address
111 East Washington Street, P.O. Box 906, Charles Town, WV, USA, 25414-0906
Potomac Bancshares Inc is a bank holding company. The bank engages in the general banking business and provides individuals, businesses, and local governments with a range of banking services. The services provided by the bank include commercial credit lines, equipment loans, and construction financing; real estate loans, secondary market, and adjustable-rate mortgages; retail loan products including home equity lines of credit; checking and savings accounts for businesses and individuals; and certificates of deposit and individual retirement accounts.