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. Ajinomoto Co's annualized net income for the quarter that ended in Dec. 2023 was $865 Mil. Ajinomoto Co's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $4,201 Mil. Therefore, Ajinomoto Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 20.59%.
The historical rank and industry rank for Ajinomoto Co's Return-on-Tangible-Equity or its related term are showing as below:
AJINY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.52 Med: 12.17 Max: 16.66
Current: 15.62
During the past 13 years, Ajinomoto Co's highest Return-on-Tangible-Equity was 16.66%. The lowest was 4.52%. And the median was 12.17%.
AJINY's Return-on-Tangible-Equity is ranked better than 72.95% of 1789
companies
in the Consumer Packaged Goods industry
Industry Median: 7.46
vs AJINY: 15.62
Ajinomoto Co Return-on-Tangible-Equity Historical Data
The historical data trend for Ajinomoto 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.
Competitive Comparison of Ajinomoto Co's Return-on-Tangible-Equity
For the Packaged Foods subindustry, Ajinomoto 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.
Ajinomoto Co's Return-on-Tangible-Equity Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Ajinomoto Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ajinomoto Co's Return-on-Tangible-Equity falls into.
Ajinomoto Co Return-on-Tangible-Equity Calculation
Ajinomoto Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2023 is calculated as
* 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.
Ajinomoto Co (OTCPK:AJINY) 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.
Ajinomoto Co Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Ajinomoto Co's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Ajinomoto is Japan's leading food company specializing in amino acids and seasonings derived from amino acid fermentation technologies. It also produces processed foods including dry soup mixes, frozen foods, and beverage products. Apart from the consumer business, it is a key supplier of MSG and nucleotides to global food manufacturers including Nestle. The food business represents nearly three fourths of group sales and 80%-plus of profits with nearly two thirds generated overseas. Healthcare and function materials (mainly Ajinomoto build-up film, or ABF), the key growth drivers through 2030, make up the balance of its business portfolio. The nonfood businesses are expected to contribute half of the group profits by 2030, boosted by ABF and CDMO growth.
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