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Hillshire Brands Co (LSE:HSH) Return-on-Tangible-Equity : 526.83% (As of Jun. 2014)


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What is Hillshire Brands Co 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. Hillshire Brands Co's annualized net income for the quarter that ended in Jun. 2014 was $108 Mil. Hillshire Brands Co's average shareholder tangible equity for the quarter that ended in Jun. 2014 was $21 Mil. Therefore, Hillshire Brands Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2014 was 526.83%.

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

LSE:HSH' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 298.06   Med: 482.02   Max: 1102.73
Current: 1054.46

During the past 13 years, Hillshire Brands Co's highest Return-on-Tangible-Equity was 1,102.73%. The lowest was 298.06%. And the median was 482.02%.

LSE:HSH's Return-on-Tangible-Equity is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 7.75 vs LSE:HSH: 1054.46

Hillshire Brands Co Return-on-Tangible-Equity Historical Data

The historical data trend for Hillshire Brands Co'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.

Hillshire Brands Co Return-on-Tangible-Equity Chart

Hillshire Brands Co Annual Data
Trend Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity 482.02 298.06 Negative Tangible Equity

Hillshire Brands Co Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 Negative Tangible Equity Negative Tangible Equity 2,044.44 214.01 526.83

Competitive Comparison of Hillshire Brands Co's Return-on-Tangible-Equity

For the Packaged Foods subindustry, Hillshire Brands Co'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.


Hillshire Brands Co's Return-on-Tangible-Equity Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hillshire Brands Co's Return-on-Tangible-Equity distribution charts can be found below:

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



Hillshire Brands Co Return-on-Tangible-Equity Calculation

Hillshire Brands Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2013 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jun. 2013 )  (A: Jun. 2012 )(A: Jun. 2013 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jun. 2013 )  (A: Jun. 2012 )(A: Jun. 2013 )
=252/( (-245+15 )/ 2 )
=252/-115
=Negative Tangible Equity %

Hillshire Brands Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2014 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2014 )  (Q: Mar. 2014 )(Q: Jun. 2014 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2014 )  (Q: Mar. 2014 )(Q: Jun. 2014 )
=108/( (96+-55)/ 2 )
=108/20.5
=526.83 %

* 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 (Jun. 2014) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Hillshire Brands Co  (LSE:HSH) 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.


Hillshire Brands Co Return-on-Tangible-Equity Related Terms

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


Hillshire Brands Co (LSE:HSH) Business Description

Traded in Other Exchanges
N/A
Address
Hillshire Brands Co was organized as a corporation in Baltimore, Maryland in 1941 as The C.D. Kenny Company, was renamed Sara Lee Corporation in 1985 and adopted its current name in June 2012. It is a manufacturer and marketer of food products. It provides meat-centric food solutions for the retail and foodservice markets. The Company's Brands' portfolio includes iconic brands such as Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Sara Lee frozen bakery and Chef Pierre pies, as well as artisanal brands Aidells and Gallo Salame. Its operations are organized around two business segments - Retail and Foodservice/Other. Retail sells a variety of packaged meat and frozen bakery products to retail customers in North America. Products include hot dogs and corn dogs, breakfast sausages, breakfast convenience items, including breakfast sandwiches and bowls, dinner sausages, premium deli and luncheon meats and cooked hams, as well as frozen pies, cakes, cheesecakes and other desserts. The primary raw materials for the segment's products include pork and beef, which are purchased almost entirely from third party suppliers and independent farmers, and poultry. The branded meat business is highly competitive, with an emphasis on product quality, innovation and value. New product innovations are a key component to its success. The Retail segment competes with other international, national, regional and local companies in each of the product categories. Foodservice/Other sells a variety of meat and bakery products to foodservice customers in North America. Products include hot dogs and corn dogs, breakfast sausages and sandwiches, dinner sausages, premium deli and luncheon meats, ham, beef and turkey as well as a variety of bakery products, including pastries, muffins, frozen pies, cakes and cheesecakes. The primary raw materials for Foodservice/Other's products include pork, beef and poultry and, to a lesser extent, wheat flour, sugar, corn syrup, cooking oils, butter, fruit and eggs, which are purchased from independent suppliers and farmers. The Foodservice/Other segment competes with other international, national, regional and local companies in each of its product categories. It considers major mass retailers and supermarket chains in the United States to be its most significant customers. The Company is subject to regulations administered by the U.S. Department of Agriculture and the Food and Drug Administration.

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