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Guzman y Gomez (ASX:GYG) Return-on-Tangible-Equity : 4.22% (As of Dec. 2024)


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What is Guzman y Gomez 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. Guzman y Gomez's annualized net income for the quarter that ended in Dec. 2024 was A$14.6 Mil. Guzman y Gomez's average shareholder tangible equity for the quarter that ended in Dec. 2024 was A$345.9 Mil. Therefore, Guzman y Gomez's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2024 was 4.22%.

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

ASX:GYG' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4   Med: -4   Max: -0.71
Current: -0.71

During the past 3 years, Guzman y Gomez's highest Return-on-Tangible-Equity was -0.71%. The lowest was -4.00%. And the median was -4.00%.

ASX:GYG's Return-on-Tangible-Equity is ranked worse than
77.95% of 322 companies
in the Restaurants industry
Industry Median: 11.125 vs ASX:GYG: -0.71

Guzman y Gomez Return-on-Tangible-Equity Historical Data

The historical data trend for Guzman y Gomez'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.

Guzman y Gomez Return-on-Tangible-Equity Chart

Guzman y Gomez Annual Data
Trend Jun22 Jun23 Jun24
Return-on-Tangible-Equity
- - -4.00

Guzman y Gomez Semi-Annual Data
Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Return-on-Tangible-Equity Get a 7-Day Free Trial - - -2.38 -5.74 4.22

Competitive Comparison of Guzman y Gomez's Return-on-Tangible-Equity

For the Restaurants subindustry, Guzman y Gomez'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.


Guzman y Gomez's Return-on-Tangible-Equity Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Guzman y Gomez's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Guzman y Gomez's Return-on-Tangible-Equity falls into.


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Guzman y Gomez Return-on-Tangible-Equity Calculation

Guzman y Gomez's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jun. 2024 )  (A: Jun. 2023 )(A: Jun. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jun. 2024 )  (A: Jun. 2023 )(A: Jun. 2024 )
=-13.748/( (0+343.393 )/ 1 )
=-13.748/343.393
=-4.00 %

Guzman y Gomez's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2024 )  (Q: Jun. 2024 )(Q: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2024 )  (Q: Jun. 2024 )(Q: Dec. 2024 )
=14.602/( (343.393+348.48)/ 2 )
=14.602/345.9365
=4.22 %

* 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 two times the semi-annual (Dec. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Guzman y Gomez  (ASX:GYG) 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.


Guzman y Gomez Return-on-Tangible-Equity Related Terms

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Guzman y Gomez Business Description

Traded in Other Exchanges
N/A
Address
126-130 Phillip Street, Level 5, Sydney, NSW, AUS
Guzman y Gomez is a Mexican-inspired quick-service restaurant operator and franchisor. Most stores are in Australia. Underpinning the company's growth outlook is an ambitious plan to reach a network of more than 1000 Australian stores over the next 20-plus years. At the end of fiscal 2024, its footprint stood at a around 200. Guzman also has a nascent presence in Singapore and Japan through master franchise agreements and runs a handful of corporate-owned restaurants in the US.

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