Stocks. Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. it is net earnings as a proportion of shareholders equity. Return on tangible equity (ROTE) (also return on average tangible common shareholders' equity) measures the rate of return on the tangible common equity. Regulators do not require regular submissions of tier 1 capital levels, but they come into play when the Federal Reserve conducts stress tests on banks.. Current and historical return on tangible equity values for FTAC Olympus Acquisition (FTOC) over the last 10 years. it is net earnings as a proportion of shareholders equity. Jump to: General, Art, Business, Computing, Medicine, Miscellaneous, Religion, Science, Slang, Sports, Tech, Phrases We found one dictionary with English definitions that includes the word return on tangible equity: Click on the first link on a line below to go directly to a page where "return on tangible equity… Tangible common equity (TCE) is a measure of a company's physical capital, which is used to evaluate a financial institution's ability to deal with potential losses. What Does Return on Common Shareholders’ Equity Mean? In other words, the return on equity ratio shows how much profit each dollar of common stockholders’ equity generates. Return on tangible equity (ROTE) (also return on average tangible common shareholders' equity (ROTCE)) measures the rate of return on the tangible common equity.. ROTE is computed by dividing net earnings (or annualized net earnings for annualized ROTE) applicable to common shareholders by average monthly tangible common shareholders' equity. [1] Tangible common shareholders' equity equals total shareholders' equity less preferred stock, goodwill, and identifiable intangible assets. Tangible common equity is calculated by subtracting intangible assets (including goodwill) and preferred equity from the company's book value. The TCE ratio (TCE divided by tangible assets) is a measure of capital adequacy at a bank. Tangible common equity (TCE) is the subset of shareholders' equity that is not preferred equity and not intangible assets.. TCE is an uncommonly used measure of a company's financial strength. Return on equity is an easy-to-calculate valuation and growth metric for a publicly traded company. Why its so important. ROCE indicates the proportion of the net income that a firm generates by each dollar of common equity invested. ROATCE - Return on Average Tangible Common Equity. Total shareholders’ equity $ 77,228 $ 75,716 Leverage ratio (2) 12.4 x 12.4 x Adjusted leverage ratio (3) 8.9 x 9.1 x Common shareholders’ equity $ 71,028 $ 69,516 Tangible common shareholders’ equity (4) 66,345 64,417 Book value per common share (5) $ 148.41 $ 144.67 Tangible book value per common share (4) (5) 138.62 134.06 Return on equity is an easy-to-calculate valuation and growth metric for a publicly traded company. Tangible equity is also known as “tangible common equity” and “tangible common shareholders’ equity”, and refers to the amount shareholders have invested in common stock. What Is the Tangible Common Equity (TCE) Ratio? Measuring a company's TCE is particularly useful for evaluating companies that have large amounts of preferred stock, such as U.S. banks that received federal bailout money in the 2008 financial crisis. Tangible common equity ( TCE ) is the subset of shareholders' equity that is not preferred equity and not intangible assets. 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