GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Mead Johnson Nutrition Co (FRA:0MJA) » Definitions » Return-on-Tangible-Equity

Mead Johnson Nutrition Co (FRA:0MJA) Return-on-Tangible-Equity : Negative Tangible Equity% (As of Mar. 2017)


View and export this data going back to . Start your Free Trial

What is Mead Johnson Nutrition Co 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. Mead Johnson Nutrition Co's annualized net income for the quarter that ended in Mar. 2017 was €448 Mil. Mead Johnson Nutrition Co's average shareholder tangible equity for the quarter that ended in Mar. 2017 was €-591 Mil. Therefore, Mead Johnson Nutrition Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2017 was Negative Tangible Equity%.

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

FRA:0MJA's Return-on-Tangible-Equity is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 7.72
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Mead Johnson Nutrition Co Return-on-Tangible-Equity Historical Data

The historical data trend for Mead Johnson Nutrition Co'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.

Mead Johnson Nutrition Co Return-on-Tangible-Equity Chart

Mead Johnson Nutrition Co Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity 431.08 Negative Tangible Equity Negative Tangible Equity

Mead Johnson Nutrition Co Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Competitive Comparison of Mead Johnson Nutrition Co's Return-on-Tangible-Equity

For the Packaged Foods subindustry, Mead Johnson Nutrition Co'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.


Mead Johnson Nutrition Co's Return-on-Tangible-Equity Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Mead Johnson Nutrition Co's Return-on-Tangible-Equity falls into.



Mead Johnson Nutrition Co Return-on-Tangible-Equity Calculation

Mead Johnson Nutrition Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2016 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=516.565/( (-746.517+-632.885 )/ 2 )
=516.565/-689.701
=Negative Tangible Equity %

Mead Johnson Nutrition Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2017 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2017 )  (Q: Dec. 2016 )(Q: Mar. 2017 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2017 )  (Q: Dec. 2016 )(Q: Mar. 2017 )
=448.424/( (-632.885+-549.873)/ 2 )
=448.424/-591.379
=Negative Tangible Equity %

* 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 (Mar. 2017) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Mead Johnson Nutrition Co  (FRA:0MJA) 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.


Mead Johnson Nutrition Co Return-on-Tangible-Equity Related Terms

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


Mead Johnson Nutrition Co (FRA:0MJA) Business Description

Traded in Other Exchanges
N/A
Address
Mead Johnson Nutrition makes, distributes, and markets pediatric nutrition products worldwide under a variety of brands, including Enfamil, its largest label, along with Sustagen, Enfagrow, and Nutramigen. Infant formula represented 59% of 2015 sales and children's nutrition 39%, with expectant and nursing mother nutrition and pediatric vitamins comprising the remainder. The company sells its products globally; 73% of sales were generated outside the United States in 2015. At about 30% of revenue, China is the company's largest market.

Mead Johnson Nutrition Co (FRA:0MJA) Headlines

No Headlines