GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Ryohin Keikaku Co Ltd (OTCPK:RYKKF) » Definitions » ROE %

RYKKF (Ryohin Keikaku Co) ROE % : 11.00% (As of Aug. 2024)


View and export this data going back to 2013. Start your Free Trial

What is Ryohin Keikaku Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ryohin Keikaku Co's annualized net income for the quarter that ended in Aug. 2024 was $220 Mil. Ryohin Keikaku Co's average Total Stockholders Equity over the quarter that ended in Aug. 2024 was $2,003 Mil. Therefore, Ryohin Keikaku Co's annualized ROE % for the quarter that ended in Aug. 2024 was 11.00%.

The historical rank and industry rank for Ryohin Keikaku Co's ROE % or its related term are showing as below:

RYKKF' s ROE % Range Over the Past 10 Years
Min: 8.71   Med: 15.58   Max: 18.73
Current: 14.58

During the past 13 years, Ryohin Keikaku Co's highest ROE % was 18.73%. The lowest was 8.71%. And the median was 15.58%.

RYKKF's ROE % is ranked better than
75.53% of 1079 companies
in the Retail - Cyclical industry
Industry Median: 5.58 vs RYKKF: 14.58

Ryohin Keikaku Co ROE % Historical Data

The historical data trend for Ryohin Keikaku Co's ROE % 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.

Ryohin Keikaku Co ROE % Chart

Ryohin Keikaku Co Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Aug21 Aug22 Aug23 Aug24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.77 16.25 9.74 8.43 14.84

Ryohin Keikaku Co Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
ROE % 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 5.10 14.36 8.59 23.37 11.00

Competitive Comparison of Ryohin Keikaku Co's ROE %

For the Department Stores subindustry, Ryohin Keikaku Co's ROE %, along with its competitors' market caps and ROE % 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.


Ryohin Keikaku Co's ROE % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Ryohin Keikaku Co's ROE % distribution charts can be found below:

* The bar in red indicates where Ryohin Keikaku Co's ROE % falls into.



Ryohin Keikaku Co ROE % Calculation

Ryohin Keikaku Co's annualized ROE % for the fiscal year that ended in Aug. 2024 is calculated as

ROE %=Net Income (A: Aug. 2024 )/( (Total Stockholders Equity (A: Aug. 2023 )+Total Stockholders Equity (A: Aug. 2024 ))/ count )
=284.185/( (1825.026+2005.27)/ 2 )
=284.185/1915.148
=14.84 %

Ryohin Keikaku Co's annualized ROE % for the quarter that ended in Aug. 2024 is calculated as

ROE %=Net Income (Q: Aug. 2024 )/( (Total Stockholders Equity (Q: May. 2024 )+Total Stockholders Equity (Q: Aug. 2024 ))/ count )
=220.396/( (2001.34+2005.27)/ 2 )
=220.396/2003.305
=11.00 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Aug. 2024) net income data. ROE % is displayed in the 30-year financial page.


Ryohin Keikaku Co  (OTCPK:RYKKF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Aug. 2024 )
=Net Income/Total Stockholders Equity
=220.396/2003.305
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(220.396 / 4539.132)*(4539.132 / 3416.4715)*(3416.4715 / 2003.305)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.86 %*1.3286*1.7054
=ROA %*Equity Multiplier
=6.46 %*1.7054
=11.00 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Aug. 2024 )
=Net Income/Total Stockholders Equity
=220.396/2003.305
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (220.396 / 235.52) * (235.52 / 373.736) * (373.736 / 4539.132) * (4539.132 / 3416.4715) * (3416.4715 / 2003.305)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9358 * 0.6302 * 8.23 % * 1.3286 * 1.7054
=11.00 %

Note: The net income data used here is four times the quarterly (Aug. 2024) net income data. The Revenue data used here is four times the quarterly (Aug. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


Ryohin Keikaku Co ROE % Related Terms

Thank you for viewing the detailed overview of Ryohin Keikaku Co's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ryohin Keikaku Co Business Description

Traded in Other Exchanges
Address
4-26-3 Higashi-Ikebukuro, Toshima-ku, Tokyo, JPN, 170-8424
Ryohin Keikaku Co Ltd otherwise known as Muji, is a Japanese retailer offering household and consumer goods. The company has a no-logo, no-brand policy. Its lower price strategy is based around the selection of materials, efficient manufacturing processes, and simplified packaging. The product portfolio ranges from stationery to clothing for men and women, food items, and major kitchen appliances. Its business includes also Muji Cafe & Meal, Muji Campsite, Muji House, and Idee. The Muji Cafe & Meal division operates Cafe Muji, offering cuisine, desserts, and beverages. Muji Campsite operates campsites and the surrounding forest areas. Muji House provides flexible framework for home interiors, such as The House of Woods and The House of Windows.

Ryohin Keikaku Co Headlines

From GuruFocus

Hennessy Japan Fund Trims 14 Holdings

By David Goodloe David Goodloe 10-06-2016

Matthews Japan Fund Comments on Ryohin Keikaku Co Ltd

By Vera Yuan Vera Yuan 07-30-2015

Hennessy Japan Fund Comments on Ryohin Keikaku Co., Ltd.

By Vera Yuan Vera Yuan 06-26-2014

Hennessy Japan Fund Annual Letter to Shareholders

By Holly LaFon Holly LaFon 01-05-2016

Hennessy Japan Fund's Top Five Second Quarter Stocks

By Monica Wolfe Monica Wolfe 06-30-2014

International Guru – Hennessy Japan Funds' Top Five Holdings

By Monica Wolfe Monica Wolfe 10-08-2013