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CHS (CHSCM.PFD) Return-on-Tangible-Equity : 12.18% (As of Feb. 2019)


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What is CHS 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. CHS's annualized net income for the quarter that ended in Feb. 2019 was $995.06 Mil. CHS's average shareholder tangible equity for the quarter that ended in Feb. 2019 was $8,171.62 Mil. Therefore, CHS's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2019 was 12.18%.

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

CHSCM.PFD' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.66   Med: 25.97   Max: 33.69
Current: 5.66

During the past 13 years, CHS's highest Return-on-Tangible-Equity was 33.69%. The lowest was 5.66%. And the median was 25.97%.

CHSCM.PFD's Return-on-Tangible-Equity is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 7.46 vs CHSCM.PFD: 5.66

CHS Return-on-Tangible-Equity Historical Data

The historical data trend for CHS'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.

CHS Return-on-Tangible-Equity Chart

CHS Annual Data
Trend Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.23 11.41 5.07 0.94 10.01

CHS Quarterly Data
May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19
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 8.51 11.59 10.02 17.26 12.18

Competitive Comparison of CHS's Return-on-Tangible-Equity

For the Farm Products subindustry, CHS'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.


CHS's Return-on-Tangible-Equity Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, CHS's Return-on-Tangible-Equity distribution charts can be found below:

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



CHS Return-on-Tangible-Equity Calculation

CHS's annualized Return-on-Tangible-Equity for the fiscal year that ended in Aug. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Aug. 2018 )  (A: Aug. 2017 )(A: Aug. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Aug. 2018 )  (A: Aug. 2017 )(A: Aug. 2018 )
=775.907/( (7521.351+7987.78 )/ 2 )
=775.907/7754.5655
=10.01 %

CHS's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2019 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2019 )  (Q: Nov. 2018 )(Q: Feb. 2019 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2019 )  (Q: Nov. 2018 )(Q: Feb. 2019 )
=995.064/( (8115.647+8227.584)/ 2 )
=995.064/8171.6155
=12.18 %

* 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 (Feb. 2019) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


CHS  (NAS:CHSCM.PFD) 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.


CHS Return-on-Tangible-Equity Related Terms

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


CHS (CHSCM.PFD) Business Description

Traded in Other Exchanges
N/A
Address
5500 Cenex Drive, Inver Grove Heights, MN, USA, 55077
CHS Inc is an integrated agricultural enterprise, that provides grain, food and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles to the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Maximum revenue is generated from Ag segment.