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Williams-Sonoma (Williams-Sonoma) Return-on-Tangible-Equity : 74.88% (As of Jan. 2024)


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What is Williams-Sonoma 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. Williams-Sonoma's annualized net income for the quarter that ended in Jan. 2024 was $1,418 Mil. Williams-Sonoma's average shareholder tangible equity for the quarter that ended in Jan. 2024 was $1,893 Mil. Therefore, Williams-Sonoma's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2024 was 74.88%.

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

WSM' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.34   Med: 30.83   Max: 71.64
Current: 56.92

During the past 13 years, Williams-Sonoma's highest Return-on-Tangible-Equity was 71.64%. The lowest was 21.34%. And the median was 30.83%.

WSM's Return-on-Tangible-Equity is ranked better than
89.64% of 1052 companies
in the Retail - Cyclical industry
Industry Median: 7.565 vs WSM: 56.92

Williams-Sonoma Return-on-Tangible-Equity Historical Data

The historical data trend for Williams-Sonoma'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.

Williams-Sonoma Return-on-Tangible-Equity Chart

Williams-Sonoma Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.07 50.12 71.64 70.44 51.70

Williams-Sonoma Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 96.22 41.56 54.96 57.88 74.88

Competitive Comparison of Williams-Sonoma's Return-on-Tangible-Equity

For the Specialty Retail subindustry, Williams-Sonoma'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.


Williams-Sonoma's Return-on-Tangible-Equity Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Williams-Sonoma's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Williams-Sonoma's Return-on-Tangible-Equity falls into.



Williams-Sonoma Return-on-Tangible-Equity Calculation

Williams-Sonoma's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jan. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jan. 2024 )  (A: Jan. 2023 )(A: Jan. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jan. 2024 )  (A: Jan. 2023 )(A: Jan. 2024 )
=949.762/( (1623.744+2050.555 )/ 2 )
=949.762/1837.1495
=51.70 %

Williams-Sonoma's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jan. 2024 )  (Q: Oct. 2023 )(Q: Jan. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jan. 2024 )  (Q: Oct. 2023 )(Q: Jan. 2024 )
=1417.756/( (1735.955+2050.555)/ 2 )
=1417.756/1893.255
=74.88 %

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


Williams-Sonoma  (NYSE:WSM) 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.


Williams-Sonoma Return-on-Tangible-Equity Related Terms

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


Williams-Sonoma (Williams-Sonoma) Business Description

Traded in Other Exchanges
Address
3250 Van Ness Avenue, San Francisco, CA, USA, 94109
With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the $300 billion domestic home category, focused on expanding its exposure in the B2B, marketplace, and franchise areas. Namesake Williams-Sonoma (163 stores) offers high-end cooking essentials, while Pottery Barn (191) provides casual home accessories. Brand extensions include Pottery Barn Kids (46) and PBteen. West Elm (123) is an emerging concept for young professionals, and Rejuvenation (10) offers lighting and house parts. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
Executives
Laura Alber officer: PRESIDENT, POTTERY BARN BRANDS
Karalyn Smith officer: EVP CHIEF TALENT OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Marta Benson officer: PRESIDENT POTTERY BARN BRAND C/O RESTORATION HARDWARE, 15 KOCH ROAD, SUITE J, CORTE MADERA CA 94925
Jeremy Brooks officer: CHIEF ACCOUNTING OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Jeffrey Howie officer: EVP CHIEF FINANCIAL OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Julie Whalen officer: VP, CONTROLLER 3260 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Ryan Ross officer: PRESIDENT WS BRAND 3250 VAN NESS AVE., SAN FRANCISCO CA 94109
Sabrina Simmons director GAP INC., 2 FOLSOM STREET, SAN FRANCISCO CA 94105
Anne A. Finucane director ONE CVS DRIVE, WOONSOCKET RI 02895
David Randolph King officer: SVP GENERAL COUNSEL 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Paula B Pretlow director C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Alex Bellos officer: PRESIDENT WEST ELM BRAND C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Esi Eggleston Bracey director C/O SIX FLAGS ENTERTAINMENT CORPORATION, 1000 BALLPARK WAY, SUITE 400, ARLINGTON TX 76011
Grace Puma Whiteford director C/O WILLIAM SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Bellamy Adrian D P director C/O GAP, INC., 2 FOLSOM ST., SAN FRANCISCO CA 94105