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Wise (WPLCF) Return-on-Tangible-Equity : 30.94% (As of Mar. 2025)


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What is Wise 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. Wise's annualized net income for the quarter that ended in Mar. 2025 was $515 Mil. Wise's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $1,665 Mil. Therefore, Wise's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 30.94%.

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

WPLCF' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.72   Med: 14.26   Max: 46.08
Current: 35.48

During the past 7 years, Wise's highest Return-on-Tangible-Equity was 46.08%. The lowest was 9.72%. And the median was 14.26%.

WPLCF's Return-on-Tangible-Equity is ranked better than
79.29% of 2405 companies
in the Software industry
Industry Median: 7.97 vs WPLCF: 35.48

Wise Return-on-Tangible-Equity Historical Data

The historical data trend for Wise'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.

Wise Return-on-Tangible-Equity Chart

Wise Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Return-on-Tangible-Equity
Get a 7-Day Free Trial 14.91 9.97 23.08 46.86 35.62

Wise Semi-Annual Data
Mar19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.41 43.72 50.77 41.33 30.94

Competitive Comparison of Wise's Return-on-Tangible-Equity

For the Information Technology Services subindustry, Wise'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.


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

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

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


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Wise Return-on-Tangible-Equity Calculation

Wise's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=538.372/( (1236.849+1785.788 )/ 2 )
=538.372/1511.3185
=35.62 %

Wise's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Sep. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Sep. 2024 )(Q: Mar. 2025 )
=515.246/( (1544.974+1785.788)/ 2 )
=515.246/1665.381
=30.94 %

* 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 (Mar. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Wise  (OTCPK:WPLCF) 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.


Wise Return-on-Tangible-Equity Related Terms

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


Wise Business Description

Industry
Traded in Other Exchanges
Address
56 Shoreditch High Street, 6th Floor, Tea Building, London, GBR, E1 6JJ
Wise is a currency conversion platform matching where possible offsetting currency transactions across borders to reduce costs. The group focuses primarily on private clients and small and midsize enterprises, but is building out its platform business aimed at providing its services as a backend solution to banks. By operating local accounts in each jurisdiction Wise sends money to or receives money from, this fintech offers faster and cheaper currency transfer services than incumbents (banks). Wise has started to broaden its product offering, issuing its clients debit cards and allowing customers to invest funds into various asset-management products.

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