Walmart Chile (XSGO:WMTCL) Return-on-Tangible-Equity: 25.43% (As of Jun. 2016)

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What is Walmart Chile Return-on-Tangible-Equity?

Walmart Chile XSGO:WMTCL Return-on-Tangible-Equity is 25.43% as of Jun. 2016.

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. Walmart Chile's annualized net income for the quarter that ended in Jun. 2016 was CLP307,895 Mil. Walmart Chile's average shareholder tangible equity for the quarter that ended in Jun. 2016 was CLP1,210,624 Mil. Therefore, Walmart Chile's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2016 was 25.43%.

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

XSGO:WMTCL's Return-on-Tangible-Equity is not ranked *
in the Retail - Cyclical industry.
Industry Median: 8.455
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Walmart Chile  (XSGO:WMTCL) 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.


Walmart Chile Return-on-Tangible-Equity Related Terms


Walmart Chile Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Walmart Chile'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.

Walmart Chile Return-on-Tangible-Equity Chart

Walmart Chile 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 19.74 18.37 24.32 19.30 36.85

Walmart Chile Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 35.25 67.43 24.18 14.93 25.43

XSGO:WMTCL vs M, JWN, KSS: Return-on-Tangible-Equity Comparison

For the Department Stores subindustry, Walmart Chile'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.


Walmart Chile Return-on-Tangible-Equity vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Walmart Chile's Return-on-Tangible-Equity distribution charts can be found below:

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



Walmart Chile Return-on-Tangible-Equity Calculation

Walmart Chile'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 )
=362019.249/( (838150.515+1126641.589 )/ 2 )
=362019.249/982396.052
=36.85 %

Walmart Chile's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2016 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2016 )  (Q: Mar. 2016 )(Q: Jun. 2016 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2016 )  (Q: Mar. 2016 )(Q: Jun. 2016 )
=307895.024/( (1171944+1249303.232)/ 2 )
=307895.024/1210623.616
=25.43 %

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

What does a Return-on-Tangible-Equity of 25.43% mean?
Walmart Chile (XSGO:WMTCL) has a Return-on-Tangible-Equity of 25.43% as of Jun. 2016. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Walmart Chile and its competitors.
Is Walmart Chile's Return-on-Tangible-Equity too high?
Walmart Chile's current Return-on-Tangible-Equity is 25.43%. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.46. Walmart Chile's value of 25.43% is 200.8% above this industry median.
How does Walmart Chile's Return-on-Tangible-Equity compare to M and JWN?
Walmart Chile's Return-on-Tangible-Equity of 25.43% can be compared against companies in the Retail - Cyclical industry. The industry median Return-on-Tangible-Equity is 8.46. Walmart Chile's value of 25.43% is 200.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.46, based on 1,060 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Walmart Chile's current Return-on-Tangible-Equity of 25.43% is 200.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Walmart Chile and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walmart Chile's current Return-on-Tangible-Equity is 25.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walmart Chile stock overvalued right now?
Walmart Chile (XSGO:WMTCL) has a current Return-on-Tangible-Equity of 25.43%. The current Return-on-Tangible-Equity is 25.43% and 200.8% above the Retail - Cyclical industry median of 8.46. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Walmart Chile (XSGO:WMTCL), the current Return-on-Tangible-Equity is 25.43% as of Jun. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Walmart Chile Business Description

Address Av eduardo frei montalva 8301, Casilla, Santiago, CHL, 620
Walmart Chile SA is engaged in the operation of supermarkets. The company operates supermarkets under the brands lider, express lider, acuenta, ekono, central mayorista, and lider.cl. The firm also provides financial services which include offering financing to its customers through MasterCard and presto credit cards, requesting advances in cash, consumer loans, access to various products and services such as insurance, payment of accounts, and Real estate services which includes construction of new premises of the company and management of commercial premises that are part of company's supermarkets.