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Monsanto Co (XSWX:MOO) Return-on-Tangible-Equity : 272.20% (As of Feb. 2018)


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What is Monsanto 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. Monsanto Co's annualized net income for the quarter that ended in Feb. 2018 was CHF5,460 Mil. Monsanto Co's average shareholder tangible equity for the quarter that ended in Feb. 2018 was CHF2,006 Mil. Therefore, Monsanto Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2018 was 272.20%.

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

XSWX:MOO's Return-on-Tangible-Equity is not ranked *
in the Agriculture industry.
Industry Median: 5.76
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Monsanto Co Return-on-Tangible-Equity Historical Data

The historical data trend for Monsanto 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.

Monsanto Co Return-on-Tangible-Equity Chart

Monsanto Co Annual Data
Trend Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.45 55.05 133.08 272.17 635.43

Monsanto Co Quarterly Data
May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18
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 351.32 5.69 48.10 272.20

Competitive Comparison of Monsanto Co's Return-on-Tangible-Equity

For the Agricultural Inputs subindustry, Monsanto 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.


Monsanto Co's Return-on-Tangible-Equity Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Monsanto Co's Return-on-Tangible-Equity distribution charts can be found below:

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



Monsanto Co Return-on-Tangible-Equity Calculation

Monsanto Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Aug. 2017 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Aug. 2017 )  (A: Aug. 2016 )(A: Aug. 2017 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Aug. 2017 )  (A: Aug. 2016 )(A: Aug. 2017 )
=2181.578/( (-593.343+1279.987 )/ 2 )
=2181.578/343.322
=635.43 %

Monsanto Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2018 )  (Q: Nov. 2017 )(Q: Feb. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2018 )  (Q: Nov. 2017 )(Q: Feb. 2018 )
=5459.58/( (1507.08+2504.333)/ 2 )
=5459.58/2005.7065
=272.20 %

* 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 (Feb. 2018) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Monsanto Co  (XSWX:MOO) 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.


Monsanto Co Return-on-Tangible-Equity Related Terms

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Monsanto Co (XSWX:MOO) Business Description

Traded in Other Exchanges
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Address
Originally a chemical company, Monsanto has morphed into an agricultural giant, focusing on seeds and crop-protection products. In a major breakthrough, Monsanto introduced the first genetically modified crop seeds in 1996 and has remained the industry leader through new product development and licensing agreements. Monsanto continues to focus on bringing new biotechnology traits to market to improve farmer yields and productivity.