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Sankei Real Estate (TSE:2972) ROE % : 4.38% (As of Aug. 2024)


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What is Sankei Real Estate ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sankei Real Estate's annualized net income for the quarter that ended in Aug. 2024 was 円2,213 Mil. Sankei Real Estate's average Total Stockholders Equity over the quarter that ended in Aug. 2024 was 円50,508 Mil. Therefore, Sankei Real Estate's annualized ROE % for the quarter that ended in Aug. 2024 was 4.38%.

The historical rank and industry rank for Sankei Real Estate's ROE % or its related term are showing as below:

TSE:2972' s ROE % Range Over the Past 10 Years
Min: 4.24   Med: 5.41   Max: 6.48
Current: 4.24

During the past 6 years, Sankei Real Estate's highest ROE % was 6.48%. The lowest was 4.24%. And the median was 5.41%.

TSE:2972's ROE % is ranked worse than
54.23% of 922 companies
in the REITs industry
Industry Median: 5 vs TSE:2972: 4.24

Sankei Real Estate ROE % Historical Data

The historical data trend for Sankei Real Estate'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.

Sankei Real Estate ROE % Chart

Sankei Real Estate Annual Data
Trend Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
ROE %
Get a 7-Day Free Trial 6.48 5.41 6.48 4.35 4.24

Sankei Real Estate Semi-Annual Data
Apr19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 5.80 4.25 4.47 4.11 4.38

Competitive Comparison of Sankei Real Estate's ROE %

For the REIT - Office subindustry, Sankei Real Estate'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.


Sankei Real Estate's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Sankei Real Estate's ROE % distribution charts can be found below:

* The bar in red indicates where Sankei Real Estate's ROE % falls into.



Sankei Real Estate ROE % Calculation

Sankei Real Estate'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 )
=2143.918/( (50565.303+50542.35)/ 2 )
=2143.918/50553.8265
=4.24 %

Sankei Real Estate's annualized ROE % for the quarter that ended in Aug. 2024 is calculated as

ROE %=Net Income (Q: Aug. 2024 )/( (Total Stockholders Equity (Q: Feb. 2024 )+Total Stockholders Equity (Q: Aug. 2024 ))/ count )
=2213.298/( (50473.127+50542.35)/ 2 )
=2213.298/50507.7385
=4.38 %

* 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 two times the semi-annual (Aug. 2024) net income data. ROE % is displayed in the 30-year financial page.


Sankei Real Estate  (TSE:2972) 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
=2213.298/50507.7385
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2213.298 / 4922.804)*(4922.804 / 104840.4925)*(104840.4925 / 50507.7385)
=Net Margin %*Asset Turnover*Equity Multiplier
=44.96 %*0.047*2.0757
=ROA %*Equity Multiplier
=2.11 %*2.0757
=4.38 %

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
=2213.298/50507.7385
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2213.298 / 2215.146) * (2215.146 / 2599.946) * (2599.946 / 4922.804) * (4922.804 / 104840.4925) * (104840.4925 / 50507.7385)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9992 * 0.852 * 52.81 % * 0.047 * 2.0757
=4.38 %

Note: The net income data used here is two times the semi-annual (Aug. 2024) net income data. The Revenue data used here is two times the semi-annual (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.


Sankei Real Estate ROE % Related Terms

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Sankei Real Estate Business Description

Traded in Other Exchanges
N/A
Address
2-3-4 Uchikanda, 4th floor, S-GATE Otemachi Kita, Chiyoda-ku, Tokyo, JPN, 100-0004
Sankei Real Estate Inc is a Japanese based J-REIT. The company is engaged in the leasing of real estate properties, and owns office buildings.

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