GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Embotelladora Andina SA (NYSE:AKO.A) » Definitions » Return-on-Tangible-Equity

Embotelladora Andina (Embotelladora Andina) Return-on-Tangible-Equity : 302.08% (As of Dec. 2023)


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What is Embotelladora Andina 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. Embotelladora Andina's annualized net income for the quarter that ended in Dec. 2023 was $272 Mil. Embotelladora Andina's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $90 Mil. Therefore, Embotelladora Andina's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 302.08%.

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

AKO.A' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 71.12   Med: 155.2   Max: 331.33
Current: 220.19

During the past 13 years, Embotelladora Andina's highest Return-on-Tangible-Equity was 331.33%. The lowest was 71.12%. And the median was 155.20%.

AKO.A's Return-on-Tangible-Equity is ranked better than
90.1% of 101 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 14.53 vs AKO.A: 220.19

Embotelladora Andina Return-on-Tangible-Equity Historical Data

The historical data trend for Embotelladora Andina'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.

Embotelladora Andina Return-on-Tangible-Equity Chart

Embotelladora Andina 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 162.22 94.76 72.42 71.07 278.56

Embotelladora Andina 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-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 Premium Member Only Premium Member Only Premium Member Only 174.62 193.16 50.62 317.30 302.08

Competitive Comparison of Embotelladora Andina's Return-on-Tangible-Equity

For the Beverages - Non-Alcoholic subindustry, Embotelladora Andina'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.


Embotelladora Andina's Return-on-Tangible-Equity Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Embotelladora Andina's Return-on-Tangible-Equity distribution charts can be found below:

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



Embotelladora Andina Return-on-Tangible-Equity Calculation

Embotelladora Andina'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 )
=196.393/( (62.811+78.195 )/ 2 )
=196.393/70.503
=278.56 %

Embotelladora Andina'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: Sep. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=271.684/( (101.682+78.195)/ 2 )
=271.684/89.9385
=302.08 %

* 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 (Dec. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Embotelladora Andina  (NYSE:AKO.A) 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.


Embotelladora Andina Return-on-Tangible-Equity Related Terms

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


Embotelladora Andina (Embotelladora Andina) Business Description

Address
Miraflores 9153, 7th Floor, Renca, Santiago, CHL
Embotelladora Andina SA is a Coca-Cola bottler in Latin America that produces carbonated soft drinks, water, fruit juices, energy drinks, and sports drinks that it sells under various Coca-Cola brands. Its geographic segment includes Chile, Brazil, Argentina, and Paraguay. The company also sells non-Coca-Cola branded teas, juices, beers, and spirits.

Embotelladora Andina (Embotelladora Andina) Headlines

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