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Monsanto Co (XSWX:MOO) Return-on-Tangible-Asset : 31.76% (As of Feb. 2018)


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What is Monsanto Co 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. Monsanto Co's annualized Net Income for the quarter that ended in Feb. 2018 was CHF5,460 Mil. Monsanto Co's average total tangible assets for the quarter that ended in Feb. 2018 was CHF17,188 Mil. Therefore, Monsanto Co's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2018 was 31.76%.

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

XSWX:MOO's Return-on-Tangible-Asset is not ranked *
in the Agriculture industry.
Industry Median: 2.565
* Ranked among companies with meaningful Return-on-Tangible-Asset only.

Monsanto Co Return-on-Tangible-Asset Historical Data

The historical data trend for Monsanto Co'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.

Monsanto Co Return-on-Tangible-Asset Chart

Monsanto Co Annual Data
Trend Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.43 16.99 14.65 8.60 14.63

Monsanto Co Quarterly Data
May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18
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 34.09 20.31 0.48 3.99 31.76

Competitive Comparison of Monsanto Co's Return-on-Tangible-Asset

For the Agricultural Inputs subindustry, Monsanto Co'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.


Monsanto Co's Return-on-Tangible-Asset Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Monsanto Co's Return-on-Tangible-Asset distribution charts can be found below:

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



Monsanto Co Return-on-Tangible-Asset Calculation

Monsanto Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Aug. 2017 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Aug. 2017 )  (A: Aug. 2016 )(A: Aug. 2017 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Aug. 2017 )  (A: Aug. 2016 )(A: Aug. 2017 )
=2181.578/( (14169.32+15658.131)/ 2 )
=2181.578/14913.7255
=14.63 %

Monsanto Co's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2018 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Feb. 2018 )  (Q: Nov. 2017 )(Q: Feb. 2018 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Feb. 2018 )  (Q: Nov. 2017 )(Q: Feb. 2018 )
=5459.58/( (17901.533+16474.155)/ 2 )
=5459.58/17187.844
=31.76 %

* 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 four times the quarterly (Feb. 2018) net income data.


Monsanto Co  (XSWX:MOO) 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.


Monsanto Co Return-on-Tangible-Asset Related Terms

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Monsanto Co (XSWX:MOO) Business Description

Traded in Other Exchanges
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Address
Originally a chemical company, Monsanto has morphed into an agricultural giant, focusing on seeds and crop-protection products. In a major breakthrough, Monsanto introduced the first genetically modified crop seeds in 1996 and has remained the industry leader through new product development and licensing agreements. Monsanto continues to focus on bringing new biotechnology traits to market to improve farmer yields and productivity.