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LG Life Sciences (XKRX:068875.PFD) Return-on-Tangible-Equity : 9.84% (As of Sep. 2016)


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What is LG Life Sciences 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. LG Life Sciences's annualized net income for the quarter that ended in Sep. 2016 was ₩20,545.60 Mil. LG Life Sciences's average shareholder tangible equity for the quarter that ended in Sep. 2016 was ₩208,708.37 Mil. Therefore, LG Life Sciences's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2016 was 9.84%.

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

XKRX:068875.PFD' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.21   Med: 6.24   Max: 14.84
Current: 13.68

During the past 9 years, LG Life Sciences's highest Return-on-Tangible-Equity was 14.84%. The lowest was -1.21%. And the median was 6.24%.

XKRX:068875.PFD's Return-on-Tangible-Equity is not ranked
in the Biotechnology industry.
Industry Median: -43.86 vs XKRX:068875.PFD: 13.68

LG Life Sciences Return-on-Tangible-Equity Historical Data

The historical data trend for LG Life Sciences'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.

LG Life Sciences Return-on-Tangible-Equity Chart

LG Life Sciences Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only 2.59 3.66 1.90 -1.21 6.24

LG Life Sciences Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 28.10 6.15 23.84 14.91 9.84

Competitive Comparison of LG Life Sciences's Return-on-Tangible-Equity

For the Biotechnology subindustry, LG Life Sciences'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.


LG Life Sciences's Return-on-Tangible-Equity Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, LG Life Sciences's Return-on-Tangible-Equity distribution charts can be found below:

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


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LG Life Sciences Return-on-Tangible-Equity Calculation

LG Life Sciences's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2015 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2015 )  (A: Dec. 2014 )(A: Dec. 2015 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2015 )  (A: Dec. 2014 )(A: Dec. 2015 )
=12443.782/( (201373.811+197348.203 )/ 2 )
=12443.782/199361.007
=6.24 %

LG Life Sciences's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2016 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2016 )  (Q: Jun. 2016 )(Q: Sep. 2016 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2016 )  (Q: Jun. 2016 )(Q: Sep. 2016 )
=20545.6/( (208845.522+208571.21)/ 2 )
=20545.6/208708.366
=9.84 %

* 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 (Sep. 2016) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


LG Life Sciences  (XKRX:068875.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.


LG Life Sciences Return-on-Tangible-Equity Related Terms

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LG Life Sciences Business Description

Traded in Other Exchanges
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Address
LG Life Sciences., Ltd. manufactures and markets medicines and fine chemistry products. The company produces the medicine based on genetic engineering and raw materials for agricultural pesticides and medicines.

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