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Adyen NV (XAMS:ADYEN) Return-on-Tangible-Equity : 28.37% (As of Dec. 2023)


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What is Adyen NV 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. Adyen NV's annualized net income for the quarter that ended in Dec. 2023 was €832 Mil. Adyen NV's average shareholder tangible equity for the quarter that ended in Dec. 2023 was €2,933 Mil. Therefore, Adyen NV's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 28.37%.

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

XAMS:ADYEN' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.92   Med: 26.02   Max: 35.11
Current: 25.32

During the past 10 years, Adyen NV's highest Return-on-Tangible-Equity was 35.11%. The lowest was 8.92%. And the median was 26.02%.

XAMS:ADYEN's Return-on-Tangible-Equity is ranked better than
74.4% of 2379 companies
in the Software industry
Industry Median: 7.63 vs XAMS:ADYEN: 25.32

Adyen NV Return-on-Tangible-Equity Historical Data

The historical data trend for Adyen NV'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.

Adyen NV Return-on-Tangible-Equity Chart

Adyen NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.58 25.23 31.22 26.81 25.16

Adyen NV Semi-Annual Data
Dec14 Dec15 Dec16 Jun17 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 Premium Member Only Premium Member Only 32.84 29.01 25.08 21.99 28.37

Competitive Comparison of Adyen NV's Return-on-Tangible-Equity

For the Software - Infrastructure subindustry, Adyen NV'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.


Adyen NV's Return-on-Tangible-Equity Distribution in the Software Industry

For the Software industry and Technology sector, Adyen NV's Return-on-Tangible-Equity distribution charts can be found below:

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



Adyen NV Return-on-Tangible-Equity Calculation

Adyen NV'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 )
=698.322/( (2407.916+3142.11 )/ 2 )
=698.322/2775.013
=25.16 %

Adyen NV'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 )
=832.298/( (2724.548+3142.11)/ 2 )
=832.298/2933.329
=28.37 %

* 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.


Adyen NV  (XAMS:ADYEN) 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.


Adyen NV Return-on-Tangible-Equity Related Terms

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


Adyen NV (XAMS:ADYEN) Business Description

Industry
Address
Simon Carmiggeltstraat 6-50, PO Box 10095, Amsterdam, NLD, 1011 DJ
Adyen is a payment company that provides merchants with a single platform to accept e-commerce, mobile, and point-of-sale payments in multiple countries using various payment schemes and methodologies. Adyen started out providing only gateway and payment processing services to merchants but soon expanded into merchant acquiring services as well. Adyen obtained a banking licence to improve settlement of merchant accounts.

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