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Inter Action (TSE:7725) ROE % : 21.71% (As of May. 2024)


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What is Inter Action ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Inter Action's annualized net income for the quarter that ended in May. 2024 was 円2,333 Mil. Inter Action's average Total Stockholders Equity over the quarter that ended in May. 2024 was 円10,747 Mil. Therefore, Inter Action's annualized ROE % for the quarter that ended in May. 2024 was 21.71%.

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

TSE:7725' s ROE % Range Over the Past 10 Years
Min: 8.28   Med: 13.25   Max: 25.23
Current: 14.55

During the past 13 years, Inter Action's highest ROE % was 25.23%. The lowest was 8.28%. And the median was 13.25%.

TSE:7725's ROE % is ranked better than
84.1% of 2390 companies
in the Hardware industry
Industry Median: 4.34 vs TSE:7725: 14.55

Inter Action ROE % Historical Data

The historical data trend for Inter Action'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.

Inter Action ROE % Chart

Inter Action Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.24 13.71 8.28 10.08 10.70

Inter Action 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 5.98 4.69 10.80 21.71 19.18

Competitive Comparison of Inter Action's ROE %

For the Electronic Components subindustry, Inter Action'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.


Inter Action's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Inter Action's ROE % distribution charts can be found below:

* The bar in red indicates where Inter Action's ROE % falls into.



Inter Action ROE % Calculation

Inter Action's annualized ROE % for the fiscal year that ended in May. 2024 is calculated as

ROE %=Net Income (A: May. 2024 )/( (Total Stockholders Equity (A: May. 2023 )+Total Stockholders Equity (A: May. 2024 ))/ count )
=1132.682/( (10132.297+11044.245)/ 2 )
=1132.682/10588.271
=10.70 %

Inter Action's annualized ROE % for the quarter that ended in May. 2024 is calculated as

ROE %=Net Income (Q: May. 2024 )/( (Total Stockholders Equity (Q: Feb. 2024 )+Total Stockholders Equity (Q: May. 2024 ))/ count )
=2333.152/( (10449.892+11044.245)/ 2 )
=2333.152/10747.0685
=21.71 %

* 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 (May. 2024) net income data. ROE % is displayed in the 30-year financial page.


Inter Action  (TSE:7725) 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: May. 2024 )
=Net Income/Total Stockholders Equity
=2333.152/10747.0685
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2333.152 / 11495.884)*(11495.884 / 13051.2315)*(13051.2315 / 10747.0685)
=Net Margin %*Asset Turnover*Equity Multiplier
=20.3 %*0.8808*1.2144
=ROA %*Equity Multiplier
=17.88 %*1.2144
=21.71 %

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: May. 2024 )
=Net Income/Total Stockholders Equity
=2333.152/10747.0685
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2333.152 / 3280.844) * (3280.844 / 3329.724) * (3329.724 / 11495.884) * (11495.884 / 13051.2315) * (13051.2315 / 10747.0685)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7111 * 0.9853 * 28.96 % * 0.8808 * 1.2144
=21.71 %

Note: The net income data used here is four times the quarterly (May. 2024) net income data. The Revenue data used here is four times the quarterly (May. 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.


Inter Action ROE % Related Terms

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Inter Action Business Description

Traded in Other Exchanges
N/A
Address
1-1, Fukuura, Kanazawa-ku, Yokohama-shi, Kanagawa-ken, JPN, 236-0004
Inter Action Corp is engaged in IoT related business, environmental energy business which include drying and deodorizing equipment for exhaust gas treatment equipment, and industry 4.0 promotion project which include precision anti-vibration device, 3D modelling design, and gear testing machine.

Inter Action Headlines

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