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. Sompo Holdings's annualized net income for the quarter that ended in Dec. 2023 was $5,321 Mil. Sompo Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $13,194 Mil. Therefore, Sompo Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 40.33%.
The historical rank and industry rank for Sompo Holdings's Return-on-Tangible-Equity or its related term are showing as below:
SMPNY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.48 Med: 9.92 Max: 28.19
Current: 28.19
During the past 13 years, Sompo Holdings's highest Return-on-Tangible-Equity was 28.19%. The lowest was 3.48%. And the median was 9.92%.
SMPNY's Return-on-Tangible-Equity is ranked better than 83.68% of 478
companies
in the Insurance industry
Industry Median: 12.01
vs SMPNY: 28.19
Sompo Holdings Return-on-Tangible-Equity Historical Data
The historical data trend for Sompo Holdings'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.
Competitive Comparison of Sompo Holdings's Return-on-Tangible-Equity
For the Insurance - Property & Casualty subindustry, Sompo Holdings'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.
Sompo Holdings's Return-on-Tangible-Equity Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Sompo Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sompo Holdings's Return-on-Tangible-Equity falls into.
* 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 (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
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.
Sompo Holdings Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Sompo Holdings's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Sompo Holdings (Sompo Holdings) Business Description
Sompo Holdings was formed in 2010 after the merger of the former Sompo Japan and Nipponkoa Insurance. The name Sompo, which literally just means "nonlife insurance" in Japanese, was adopted as a common brand in 2001 for a planned three-way merger of Yasuda Fire, Nissan Fire, and Taisei Fire, although that deal had to be reworked after Taisei Fire's sudden bankruptcy from Sept. 11 losses. In the last few years Sompo has worked to integrate the former Nipponkoa, which before the merger had been somewhat of an industry laggard, to improve overall efficiency. Although Nissan Fire is one of its predecessor firms, in reality Sompo's development has been mainly driven by the former Yasuda Fire and the group has balanced ties to most of Japan's automakers, rather than focusing on Nissan.
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