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Lifeway Foods (Lifeway Foods) Return-on-Tangible-Asset : 25.53% (As of Dec. 2023)


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What is Lifeway Foods Return-on-Tangible-Asset?

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Lifeway Foods's annualized Net Income for the quarter that ended in Dec. 2023 was $15.9 Mil. Lifeway Foods's average total tangible assets for the quarter that ended in Dec. 2023 was $62.2 Mil. Therefore, Lifeway Foods's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was 25.53%.

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

LWAY' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -6.63   Med: 4.21   Max: 20.36
Current: 20.36

During the past 13 years, Lifeway Foods's highest Return-on-Tangible-Asset was 20.36%. The lowest was -6.63%. And the median was 4.21%.

LWAY's Return-on-Tangible-Asset is ranked better than
94.8% of 1905 companies
in the Consumer Packaged Goods industry
Industry Median: 3.18 vs LWAY: 20.36

Lifeway Foods Return-on-Tangible-Asset Historical Data

The historical data trend for Lifeway Foods's Return-on-Tangible-Asset 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.

Lifeway Foods Return-on-Tangible-Asset Chart

Lifeway Foods Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.03 7.08 6.73 1.83 20.13

Lifeway Foods Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Return-on-Tangible-Asset 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 Premium Member Only Premium Member Only Premium Member Only 5.49 6.54 24.06 23.82 25.53

Competitive Comparison of Lifeway Foods's Return-on-Tangible-Asset

For the Packaged Foods subindustry, Lifeway Foods's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.


Lifeway Foods's Return-on-Tangible-Asset Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Lifeway Foods's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Lifeway Foods's Return-on-Tangible-Asset falls into.



Lifeway Foods Return-on-Tangible-Asset Calculation

Lifeway Foods's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=11.367/( (49.857+63.052)/ 2 )
=11.367/56.4545
=20.13 %

Lifeway Foods's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=15.876/( (61.317+63.052)/ 2 )
=15.876/62.1845
=25.53 %

* 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-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Dec. 2023) net income data.


Lifeway Foods  (NAS:LWAY) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Lifeway Foods Return-on-Tangible-Asset Related Terms

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


Lifeway Foods (Lifeway Foods) Business Description

Traded in Other Exchanges
Address
6431 West Oakton Street, Morton Grove, IL, USA, 60053
Lifeway Foods Inc is engaged in manufacturing probiotic, cultured, functional dairy health food products. Its primary product is drinkable kefir which is a cultured dairy product. Its product categories are Drinkable Kefir which is the key revenue-driving product, European-style soft cheeses, Cream, ProBugs, Frozen Kefir and Other dairy. The company manufacture and market products under the Lifeway and Fresh Made brand names, as well as under private labels on behalf of customers. It sells the products primarily through direct sales force, brokers, and distributors.
Executives
Edward Smolyansky officer: CFO, Treasurer
Julie Smolyansky director, officer: President and CEO
Ludmila Smolyansky director, 10 percent owner
Juan Carlos Dalto director 3059 TOWNSGATE ROAD, WESTLAKE VILLAGE CA 91361
Perfecto Sanchez director 153 DIEHL ROAD, CALLICOON NY 12723
Dorri Mcwhorter director 6431 OAKTON STREET, C/O LIFEWAY FOODS, INC., MORTON GROVE IL 60053
Jody Levy director 6431 OAKTON STREET, C/O LIFEWAY FOODS, INC., MORTON GROVE IL 60053
George Sent director C/O LIFEWAY FOODS, 6431 OAKTON STREET, MORTON GROVE IL 60053
Amy M. Feldman officer: SENIOR EXECUTIVE VP OF SALES C/O LIFEWAY FOODS, 6431 OAKTON STREET, MORTON GROVE IL 60053
Neha J Clark officer: Chief Financial Officer C/O LIFEWAY FOODS, 6431 OAKTON STREET, MORTON GROVE IL 60053
Eric A Hanson officer: Chief Accounting Officer C/O LIFEWAY FOODS, 6431 OAKTON STREET, MORTON GROVE IL 60053
Laurent Marcel director C/O DANONE NA, 1 MAPLE AVE, WHITE PLAINS NY 10605
Douglas Hass officer: Gen Counsel & Asst Corp Sec. 1205 KIMBALL BLVD., JASPER IN 47546
Jennifer Reilly officer: Sr Exec V. President of Sales 6431 W. OAKTON STREET, MORTON GROVE IL 60053
John P Waldron officer: Chief Financial officer LIFEWAY FOODS, INC., 6431 W. OAKTON STREET, MORTON GROVE IL 60053