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Tiffany (Tiffany) ROE % : 14.73% (As of Oct. 2020)


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What is Tiffany ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tiffany's annualized net income for the quarter that ended in Oct. 2020 was $476 Mil. Tiffany's average Total Stockholders Equity over the quarter that ended in Oct. 2020 was $3,232 Mil. Therefore, Tiffany's annualized ROE % for the quarter that ended in Oct. 2020 was 14.73%.

The historical rank and industry rank for Tiffany's ROE % or its related term are showing as below:

TIF' s ROE % Range Over the Past 10 Years
Min: 6.82   Med: 16.81   Max: 19.41
Current: 8.94

During the past 13 years, Tiffany's highest ROE % was 19.41%. The lowest was 6.82%. And the median was 16.81%.

TIF's ROE % is not ranked
in the Retail - Cyclical industry.
Industry Median: 5.96 vs TIF: 8.94

Tiffany ROE % Historical Data

The historical data trend for Tiffany's ROE % 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.

Tiffany ROE % Chart

Tiffany Annual Data
Trend Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.15 15.06 11.85 18.47 16.80

Tiffany Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
ROE % 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 9.94 24.94 -7.96 4.01 14.73

Competitive Comparison of Tiffany's ROE %

For the Luxury Goods subindustry, Tiffany's ROE %, along with its competitors' market caps and ROE % 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.


Tiffany's ROE % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Tiffany's ROE % distribution charts can be found below:

* The bar in red indicates where Tiffany's ROE % falls into.



Tiffany ROE % Calculation

Tiffany's annualized ROE % for the fiscal year that ended in Jan. 2020 is calculated as

ROE %=Net Income (A: Jan. 2020 )/( (Total Stockholders Equity (A: Jan. 2019 )+Total Stockholders Equity (A: Jan. 2020 ))/ count )
=541.1/( (3117.4+3322.9)/ 2 )
=541.1/3220.15
=16.80 %

Tiffany's annualized ROE % for the quarter that ended in Oct. 2020 is calculated as

ROE %=Net Income (Q: Oct. 2020 )/( (Total Stockholders Equity (Q: Jul. 2020 )+Total Stockholders Equity (Q: Oct. 2020 ))/ count )
=476/( (3195.8+3267.2)/ 2 )
=476/3231.5
=14.73 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Oct. 2020) net income data. ROE % is displayed in the 30-year financial page.


Tiffany  (NYSE:TIF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Oct. 2020 )
=Net Income/Total Stockholders Equity
=476/3231.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(476 / 4032.8)*(4032.8 / 6895.8)*(6895.8 / 3231.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.8 %*0.5848*2.1339
=ROA %*Equity Multiplier
=6.9 %*2.1339
=14.73 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Oct. 2020 )
=Net Income/Total Stockholders Equity
=476/3231.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (476 / 594.4) * (594.4 / 660) * (660 / 4032.8) * (4032.8 / 6895.8) * (6895.8 / 3231.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8008 * 0.9006 * 16.37 % * 0.5848 * 2.1339
=14.73 %

Note: The net income data used here is four times the quarterly (Oct. 2020) net income data. The Revenue data used here is four times the quarterly (Oct. 2020) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


Tiffany ROE % Related Terms

Thank you for viewing the detailed overview of Tiffany's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Tiffany (Tiffany) Business Description

Traded in Other Exchanges
N/A
Address
200 Fifth Avenue, New York, NY, USA, 10010
Tiffany is a monobrand jeweler with a 180-year history. It is vertically integrated, with around 60% of jewellery produced internally. Tiffany is present in over 20 countries globally, with over 300 own stores. Its biggest market is its home market, the U.S.; however, Europe and Asia-Pacific have shown the strongest growth in recent years. Engagement jewellery contributes 26% of sales, the remainder being designer jewellery and other collections.
Executives
Alessandro Bogliolo director, officer: Chief Executive Officer 727 FIFTH AVENUE, NEW YORK NY 10022
Gretchen Koback-pursel officer: Senior Vice President 200 FIFTH AVENUE NEW YORK NY 10010
Andrea Davey officer: Senior Vice President 200 FIFTH AVENUE NEW YORK NY 10010
Philippe Galtie officer: Senior Vice President 200 FIFTH AVENUE NEW YORK NY 10010
Leigh M. Harlan officer: SENIOR VICE PRESIDENT 200 FIFTH AVENUE NEW YORK NY 10010
Mark J Erceg officer: Principal Financial Officer 248 E. SKYLINE DRIVE, WASHINGTON UT 84780
Andrew W. Hart officer: SENIOR VICE PRESIDENT TIFFANY & CO. 727 FIFTH AVENUE NEW YORK NY 10022
Daniella Vitale officer: Executive Vice President 200 FIFTH AVENUE NEW YORK NY 10010
Francesco Trapani director 727 FIFTH AVENUE NEW YORK NY 10022
Abby F Kohnstamm director C/O TIFFANY & CO., CORP. SECRETARY'S DEPT., 600 MADISON AV, NEW YORK NY 10022
Hafize Gaye Erkan director 727 FIFTH AVENUE, NEW YORK NY 10022
Hudis Jane Hertzmark director C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Lawrence K Fish director ONE CITIZENS PLAZA, PROVIDENCE RI 02903
William A Shutzer director C/O TIFFANY & CO LEGAL DEPT, 727 FIFTH AVE, NEW YORK NY 10022
Pamela H Cloud officer: Senior Vice President TIFFANY & CO. 727 FIFTH AVENUE NEW YORK NY 10022

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