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Kawasaki Heavy Industries (Kawasaki Heavy Industries) Return-on-Tangible-Equity : 28.64% (As of Mar. 2024)


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What is Kawasaki Heavy Industries 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. Kawasaki Heavy Industries's annualized net income for the quarter that ended in Mar. 2024 was $1,037 Mil. Kawasaki Heavy Industries's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $3,622 Mil. Therefore, Kawasaki Heavy Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 28.64%.

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

KWHIY' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.41   Med: 6.15   Max: 13.56
Current: 4.91

During the past 13 years, Kawasaki Heavy Industries's highest Return-on-Tangible-Equity was 13.56%. The lowest was -4.41%. And the median was 6.15%.

KWHIY's Return-on-Tangible-Equity is ranked worse than
61.56% of 2919 companies
in the Industrial Products industry
Industry Median: 7.54 vs KWHIY: 4.91

Kawasaki Heavy Industries Return-on-Tangible-Equity Historical Data

The historical data trend for Kawasaki Heavy Industries'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.

Kawasaki Heavy Industries Return-on-Tangible-Equity Chart

Kawasaki Heavy Industries Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.24 -4.39 2.73 10.50 4.47

Kawasaki Heavy Industries Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 0.41 6.89 -25.11 8.04 28.64

Competitive Comparison of Kawasaki Heavy Industries's Return-on-Tangible-Equity

For the Specialty Industrial Machinery subindustry, Kawasaki Heavy Industries'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.


Kawasaki Heavy Industries's Return-on-Tangible-Equity Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kawasaki Heavy Industries's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Kawasaki Heavy Industries's Return-on-Tangible-Equity falls into.



Kawasaki Heavy Industries Return-on-Tangible-Equity Calculation

Kawasaki Heavy Industries's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2024 )  (A: Mar. 2023 )(A: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2024 )  (A: Mar. 2023 )(A: Mar. 2024 )
=169.385/( (3815.177+3767.71 )/ 2 )
=169.385/3791.4435
=4.47 %

Kawasaki Heavy Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=1037.44/( (3477.231+3767.71)/ 2 )
=1037.44/3622.4705
=28.64 %

* 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 (Mar. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Kawasaki Heavy Industries  (OTCPK:KWHIY) 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.


Kawasaki Heavy Industries Return-on-Tangible-Equity Related Terms

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


Kawasaki Heavy Industries (Kawasaki Heavy Industries) Business Description

Traded in Other Exchanges
Address
Kobe Crystal Tower, 1-3, Higashikawasaki-cho 1-chome, Chuo-ku, Kobe, JPN, 650-8680
Kawasaki Heavy Industries Ltd is a diversified industrial company serving land, sea, and air markets. It produces heavy machinery, including multiple land vehicles, large tankers, submarines, energy systems, and aerospace equipment. In addition, the company works to produce environmental plants, industrial plants, precision machinery, robots, and infrastructure equipment. One aspect of the company focuses on manufacturing motorcycles under its well-known Kawasaki brand. Another focus and revenue generator is the division geared towards manufacturing commercial aircraft and jet engines. Sales generated in Asia account for the majority of total revenue, but the company does have a presence in the Americas and Europe.