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Sotsu Co (Sotsu Co) ROE % : 8.21% (As of Nov. 2019)


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What is Sotsu Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sotsu Co's annualized net income for the quarter that ended in Nov. 2019 was $17.55 Mil. Sotsu Co's average Total Stockholders Equity over the quarter that ended in Nov. 2019 was $213.85 Mil. Therefore, Sotsu Co's annualized ROE % for the quarter that ended in Nov. 2019 was 8.21%.

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

STUAF' s ROE % Range Over the Past 10 Years
Min: 7.68   Med: 11.06   Max: 13.31
Current: 8.23

During the past 12 years, Sotsu Co's highest ROE % was 13.31%. The lowest was 7.68%. And the median was 11.06%.

STUAF's ROE % is not ranked
in the Media - Diversified industry.
Industry Median: 2.49 vs STUAF: 8.23

Sotsu Co ROE % Historical Data

The historical data trend for Sotsu 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.

Sotsu Co ROE % Chart

Sotsu Co Annual Data
Trend Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.44 14.33 10.27 9.02 8.43

Sotsu Co Quarterly Data
Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19
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 8.52 8.87 10.07 5.94 8.21

Competitive Comparison of Sotsu Co's ROE %

For the Entertainment subindustry, Sotsu 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.


Sotsu Co's ROE % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Sotsu Co's ROE % distribution charts can be found below:

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



Sotsu Co ROE % Calculation

Sotsu Co's annualized ROE % for the fiscal year that ended in Aug. 2019 is calculated as

ROE %=Net Income (A: Aug. 2019 )/( (Total Stockholders Equity (A: Aug. 2018 )+Total Stockholders Equity (A: Aug. 2019 ))/ count )
=17.2/( (192.111+215.892)/ 2 )
=17.2/204.0015
=8.43 %

Sotsu Co's annualized ROE % for the quarter that ended in Nov. 2019 is calculated as

ROE %=Net Income (Q: Nov. 2019 )/( (Total Stockholders Equity (Q: Aug. 2019 )+Total Stockholders Equity (Q: Nov. 2019 ))/ count )
=17.552/( (215.892+211.799)/ 2 )
=17.552/213.8455
=8.21 %

* 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 (Nov. 2019) net income data. ROE % is displayed in the 30-year financial page.


Sotsu Co  (GREY:STUAF) 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: Nov. 2019 )
=Net Income/Total Stockholders Equity
=17.552/213.8455
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(17.552 / 134.924)*(134.924 / 257.0225)*(257.0225 / 213.8455)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.01 %*0.525*1.2019
=ROA %*Equity Multiplier
=6.83 %*1.2019
=8.21 %

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: Nov. 2019 )
=Net Income/Total Stockholders Equity
=17.552/213.8455
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (17.552 / 25.456) * (25.456 / 25.984) * (25.984 / 134.924) * (134.924 / 257.0225) * (257.0225 / 213.8455)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6895 * 0.9797 * 19.26 % * 0.525 * 1.2019
=8.21 %

Note: The net income data used here is four times the quarterly (Nov. 2019) net income data. The Revenue data used here is four times the quarterly (Nov. 2019) 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.


Sotsu Co ROE % Related Terms

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Sotsu Co (Sotsu Co) Business Description

Traded in Other Exchanges
N/A
Address
2-4-1, Hamamatsu-Cho, Minato-Ku, Tokyo, JPN, 105-6126
Sotsu Co Ltd operates as an entertainment company in Japan. It works in Media division, Rights division, and Sports division. The Media division produces animations by planning and creating animated programmes with animation production companies. The Rights business division provides merchandising licenses for the animation characters to its partner companies including toy, game, food, miscellaneous goods, and apparel manufacturers among others, and the Sport business promote the merchandising of the baseball team's products and act as a copyright contract agency for professional baseball teams, and sell the merchandise to baseball team goods stores both inside and outside the stadium.

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