Return on tangible equity

What is Return on tangible equity?

Return on tangible equity is calculated as Net income attributable to Common stockholders divided by the average Total tangible equity over the last two periods.

Formula:

Net income attributable to Common stockholders / Average total tangible equity for two periods

What does Return on tangible equity (ROTE) mean?

ROTE measures how a company uses shareholder capital to make a profit. Thus, showing how efficiently used investment funds for profit.

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