GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Smurfit WestRock PLC (LSE:SWR) » Definitions » Return-on-Tangible-Equity

Smurfit WestRock (LSE:SWR) Return-on-Tangible-Equity : 20.93% (As of Jun. 2024)


View and export this data going back to 2007. Start your Free Trial

What is Smurfit WestRock 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. Smurfit WestRock's annualized net income for the quarter that ended in Jun. 2024 was £508 Mil. Smurfit WestRock's average shareholder tangible equity for the quarter that ended in Jun. 2024 was £2,426 Mil. Therefore, Smurfit WestRock's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 was 20.93%.

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

LSE:SWR' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -508.76   Med: 45.8   Max: 187.19
Current: 21.25

During the past 13 years, Smurfit WestRock's highest Return-on-Tangible-Equity was 187.19%. The lowest was -508.76%. And the median was 45.80%.

LSE:SWR's Return-on-Tangible-Equity is ranked better than
86.56% of 387 companies
in the Packaging & Containers industry
Industry Median: 6.26 vs LSE:SWR: 21.25

Smurfit WestRock Return-on-Tangible-Equity Historical Data

The historical data trend for Smurfit WestRock'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.

Smurfit WestRock Return-on-Tangible-Equity Chart

Smurfit WestRock Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 184.97 71.16 45.78 47.73 28.81

Smurfit WestRock Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 58.48 33.96 37.31 20.91 20.93

Competitive Comparison of Smurfit WestRock's Return-on-Tangible-Equity

For the Packaging & Containers subindustry, Smurfit WestRock'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.


Smurfit WestRock's Return-on-Tangible-Equity Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Smurfit WestRock's Return-on-Tangible-Equity distribution charts can be found below:

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



Smurfit WestRock Return-on-Tangible-Equity Calculation

Smurfit WestRock's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=661.935/( (2071.672+2523.738 )/ 2 )
=661.935/2297.705
=28.81 %

Smurfit WestRock's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2024 )  (Q: Dec. 2023 )(Q: Jun. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2024 )  (Q: Dec. 2023 )(Q: Jun. 2024 )
=507.756/( (2523.738+2327.346)/ 2 )
=507.756/2425.542
=20.93 %

* 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 (Jun. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Smurfit WestRock  (LSE:SWR) 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.


Smurfit WestRock Return-on-Tangible-Equity Related Terms

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


Smurfit WestRock Business Description

Traded in Other Exchanges
Address
Beech Hill, Clonskeagh, Dublin 4, Dublin, IRL, D04 N2R2
Smurfit WestRock manufactures corrugated packaging and consumer packaging, such as folding cartons and paperboard. After the merger of Smurfit Kappa and WestRock in summer 2024, Smurfit WestRock became the largest producer of containerboard in the world, with substantial operations in North America, South America, and Europe.

Smurfit WestRock Headlines

No Headlines