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SDXAY (Sodexo) Return-on-Tangible-Asset : 9.34% (As of Feb. 2025)


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What is Sodexo Return-on-Tangible-Asset?

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Sodexo's annualized Net Income for the quarter that ended in Feb. 2025 was $904 Mil. Sodexo's average total tangible assets for the quarter that ended in Feb. 2025 was $9,682 Mil. Therefore, Sodexo's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2025 was 9.34%.

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

SDXAY' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -2.94   Med: 6.22   Max: 8.3
Current: 7.34

During the past 13 years, Sodexo's highest Return-on-Tangible-Asset was 8.30%. The lowest was -2.94%. And the median was 6.22%.

SDXAY's Return-on-Tangible-Asset is ranked better than
66.51% of 1069 companies
in the Business Services industry
Industry Median: 4.23 vs SDXAY: 7.34

Sodexo Return-on-Tangible-Asset Historical Data

The historical data trend for Sodexo's Return-on-Tangible-Asset 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.

Sodexo Return-on-Tangible-Asset Chart

Sodexo Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.03 1.18 4.93 5.79 1.42

Sodexo Semi-Annual Data
Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25
Return-on-Tangible-Asset 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 6.64 5.03 -1.21 5.27 9.34

Competitive Comparison of Sodexo's Return-on-Tangible-Asset

For the Specialty Business Services subindustry, Sodexo's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.


Sodexo's Return-on-Tangible-Asset Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Sodexo's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Sodexo's Return-on-Tangible-Asset falls into.


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Sodexo Return-on-Tangible-Asset Calculation

Sodexo's annualized Return-on-Tangible-Asset for the fiscal year that ended in Aug. 2024 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Aug. 2024 )  (A: Aug. 2023 )(A: Aug. 2024 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Aug. 2024 )  (A: Aug. 2023 )(A: Aug. 2024 )
=185.226/( (16115.595+9949.283)/ 2 )
=185.226/13032.439
=1.42 %

Sodexo's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Feb. 2025 )  (Q: Aug. 2024 )(Q: Feb. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Feb. 2025 )  (Q: Aug. 2024 )(Q: Feb. 2025 )
=904.166/( (9949.283+9414.584)/ 2 )
=904.166/9681.9335
=9.34 %

* 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-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is two times the semi-annual (Feb. 2025) net income data.


Sodexo  (OTCPK:SDXAY) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Sodexo Return-on-Tangible-Asset Related Terms

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


Sodexo Business Description

Address
255, quai de la Bataille-de-Stalingrad, Issy-les-Moulineaux, Cedex 9, Paris, FRA, 92130
Sodexo is one of the largest food service companies globally, operating in 45 countries with annual sales of more than EUR 20 billion. Sodexo's model rests on operating on-premises catering facilities, rather than centralized industrial kitchens. Food services remains the largest business segment, contributing 66% of revenue in 2024. Sodexo has its own group purchasing organization, or GPO, Entegra, with annual purchasing of over EUR 37 billion. The company spun off its benefits and service business, Pluxee, and now focuses on food services and its second business, facilities-management services.

Sodexo Headlines

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