New Oriental Education & Technology Group (New Oriental Education & Technology Group) Return-on-Tangible-Equity : 3.29% (As of Nov. 2023)

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What is New Oriental Education & Technology Group 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. New Oriental Education & Technology Group's annualized net income for the quarter that ended in Nov. 2023 was $120 Mil. New Oriental Education & Technology Group's average shareholder tangible equity for the quarter that ended in Nov. 2023 was $3,654 Mil. Therefore, New Oriental Education & Technology Group's annualized Return-on-Tangible-Equity for the quarter that ended in Nov. 2023 was 3.29%.

The historical rank and industry rank for New Oriental Education & Technology Group's Return-on-Tangible-Equity or its related term are showing as below:

EDU' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -28.11 Med: 16.65 Max: 23.13
Current: 8.58

During the past 13 years, New Oriental Education & Technology Group's highest Return-on-Tangible-Equity was 23.13%. The lowest was -28.11%. And the median was 16.65%.

EDU's Return-on-Tangible-Equity is ranked worse than
53.39% of 236 companies
in the Education industry
Industry Median: 10.47 vs EDU: 8.58

New Oriental Education & Technology Group Return-on-Tangible-Equity Historical Data

The historical data trend for New Oriental Education & Technology Group'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.

New Oriental Education & Technology Group Return-on-Tangible-Equity Chart

New Oriental Education & Technology Group Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Return-on-Tangible-Equity

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11.31

16.88

8.97

-28.11

5.00

New Oriental Education & Technology Group Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Return-on-Tangible-Equity	Get a 7-Day Free Trial															0.08	9.26	3.28	18.69	3.29

Competitive Comparison of New Oriental Education & Technology Group's Return-on-Tangible-Equity

For the Education & Training Services subindustry, New Oriental Education & Technology Group'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.

New Oriental Education & Technology Group's Return-on-Tangible-Equity Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, New Oriental Education & Technology Group's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where New Oriental Education & Technology Group's Return-on-Tangible-Equity falls into.

New Oriental Education & Technology Group Return-on-Tangible-Equity Calculation

New Oriental Education & Technology Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in May. 2023 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(A: May. 2023 )		(A: May. 2022 )		(A: May. 2023 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets )	/ count )
		(A: May. 2023 )		(A: May. 2022 )		(A: May. 2023 )
	=	177.341	/	( (3628.276	+	3470.334 )	/ 2 )
	=	177.341	/	3549.305
	=	5.00 %

New Oriental Education & Technology Group's annualized Return-on-Tangible-Equity for the quarter that ended in Nov. 2023 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(Q: Nov. 2023 )		(Q: Aug. 2023 )		(Q: Nov. 2023 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets)	/ count )
		(Q: Nov. 2023 )		(Q: Aug. 2023 )		(Q: Nov. 2023 )
	=	120.264	/	( (3609.084	+	3699.28)	/ 2 )
	=	120.264	/	3654.182
	=	3.29 %

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

New Oriental Education & Technology Group (NYSE:EDU) 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.

New Oriental Education & Technology Group Return-on-Tangible-Equity Related Terms

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New Oriental Education & Technology Group (New Oriental Education & Technology Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » New Oriental Education & Technology Group Inc (NYSE:EDU) » Definitions » Return-on-Tangible-Equity

Comparable Companies

Traded in Other Exchanges

EDUN:Mexico 09901:Hong Kong 0K75:UK N1U0:Germany E1DU34:Brazil

Address

No. 6 Hai Dian Zhong Street, Haidian District, Beijing, CHN, 100080

Website

https://www.neworiental.org

New Oriental is a leading private education provider in China. K-9 academic after-school tutoring used to account for 50%-60% of New Oriental's revenue before the regulatory crackdown in 2021. After terminating its K-9 academic after-school tutoring business, New Oriental has identified a few new initiatives such as nonacademic tutoring and intelligent learning systems and devices. The remaining businesses include high school academic after-school tutoring and overseas-related test preparation and consulting business. It also owns 55.7% of East Buy (HKG: 01797), a market leader in livestreaming e-commerce.