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. Globe Life's annualized net income for the quarter that ended in Mar. 2024 was $1,017 Mil. Globe Life's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $4,281 Mil. Therefore, Globe Life's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 23.75%.
The historical rank and industry rank for Globe Life's Return-on-Tangible-Equity or its related term are showing as below:
GL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.64 Med: 13.81 Max: 29.34
Current: 25.59
During the past 13 years, Globe Life's highest Return-on-Tangible-Equity was 29.34%. The lowest was 9.64%. And the median was 13.81%.
GL's Return-on-Tangible-Equity is ranked better than 81.04% of 480
companies
in the Insurance industry
Industry Median: 12.01
vs GL: 25.59
Globe Life Return-on-Tangible-Equity Historical Data
The historical data trend for Globe Life'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.
Competitive Comparison of Globe Life's Return-on-Tangible-Equity
For the Insurance - Life subindustry, Globe Life'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.
Globe Life's Return-on-Tangible-Equity Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Globe Life's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Globe Life's Return-on-Tangible-Equity falls into.
Globe Life Return-on-Tangible-Equity Calculation
Globe Life'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 four times the quarterly (Mar. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Globe Life (NYSE:GL) 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.
Globe Life Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Globe Life's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Globe Life Inc is an insurance holding company. It provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The company's core operations are organized into four reportable segments: life insurance, supplemental health insurance, annuities, and investments. Investment activities, conducted by the investment segment, focus on seeking investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities and, over the long term, the expected yields are considered when setting insurance premium rates and product profitability expectations.
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