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. Brown-Forman's annualized net income for the quarter that ended in Jan. 2024 was $1,140 Mil. Brown-Forman's average shareholder tangible equity for the quarter that ended in Jan. 2024 was $891 Mil. Therefore, Brown-Forman's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2024 was 128.02%.
The historical rank and industry rank for Brown-Forman's Return-on-Tangible-Equity or its related term are showing as below:
BF.A'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 64.69 Med: 122.26 Max: 1265.15
Current: 130.55
During the past 13 years, Brown-Forman's highest Return-on-Tangible-Equity was 1,265.15%. The lowest was 64.69%. And the median was 122.26%.
BF.A's Return-on-Tangible-Equity is ranked better than 87.75% of 204
companies
in the Beverages - Alcoholic industry
Industry Median: 9.805
vs BF.A: 130.55
Brown-Forman Return-on-Tangible-Equity Historical Data
The historical data trend for Brown-Forman'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.
Competitive Comparison of Brown-Forman's Return-on-Tangible-Equity
For the Beverages - Wineries & Distilleries subindustry, Brown-Forman'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.
Brown-Forman's Return-on-Tangible-Equity Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Brown-Forman's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Brown-Forman's Return-on-Tangible-Equity falls into.
* 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 (Jan. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
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.
Brown-Forman Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Brown-Forman's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Brown-Forman is a U.S.-based manufacturer of premium distilled spirits that generates close to 70% of revenues in the whiskey category, under well-known Tennessee whiskey brand Jack Daniel's and bourbon brands Woodford Reserve and Old Forester. It also manufactures and distributes tequila, vodka, rum, gin, and premium wines. The company generates 47% of sales from its home market, while the bulk of international revenues come from Europe, Australia, and Latin America. The Brown family controls over 50% of the economic interests and a 67% voting power of the company.
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