Beam (FRA:BJM) Return-on-Tangible-Equity : 203.42% (As of Dec. 2013)

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What is Beam Return-on-Tangible-Equity?

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. Beam's annualized net income for the quarter that ended in Dec. 2013 was €264 Mil. Beam's average shareholder tangible equity for the quarter that ended in Dec. 2013 was €130 Mil. Therefore, Beam's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2013 was 203.42%.

The historical rank and industry rank for Beam's Return-on-Tangible-Equity or its related term are showing as below:

FRA:BJM's Return-on-Tangible-Equity is not ranked ^*
in the Beverages - Alcoholic industry.
Industry Median: 10.79
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Beam Return-on-Tangible-Equity Historical Data

The historical data trend for Beam'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.

* Premium members only.

Beam Return-on-Tangible-Equity Chart

Beam Annual Data

Trend

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Dec13

Return-on-Tangible-Equity

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Negative Tangible Equity

7,129.87

Beam Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
Return-on-Tangible-Equity	Get a 7-Day Free Trial															Negative Tangible Equity	Negative Tangible Equity	Negative Tangible Equity	5,039.13	203.42

Competitive Comparison of Beam's Return-on-Tangible-Equity

For the Beverages - Wineries & Distilleries subindustry, Beam'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.

Beam's Return-on-Tangible-Equity Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Beam's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Beam's Return-on-Tangible-Equity falls into.

Beam Return-on-Tangible-Equity Calculation

Beam's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2013 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(A: Dec. 2013 )		(A: Dec. 2012 )		(A: Dec. 2013 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets )	/ count )
		(A: Dec. 2013 )		(A: Dec. 2012 )		(A: Dec. 2013 )
	=	264.625	/	( (-205.664	+	213.087 )	/ 2 )
	=	264.625	/	3.7115000000001
	=	7,129.87 %

Beam's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2013 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(Q: Dec. 2013 )		(Q: Sep. 2013 )		(Q: Dec. 2013 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets)	/ count )
		(Q: Dec. 2013 )		(Q: Sep. 2013 )		(Q: Dec. 2013 )
	=	263.676	/	( (46.151	+	213.087)	/ 2 )
	=	263.676	/	129.619
	=	203.42 %

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 (Dec. 2013) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

Beam (FRA:BJM) Return-on-Tangible-Equity Explanation

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.

Beam Return-on-Tangible-Equity Related Terms

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Beam (FRA:BJM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Beam Inc (FRA:BJM) » Definitions » Return-on-Tangible-Equity

Traded in Other Exchanges

N/A

Address

Website

http://www.beamglobal.com

Beam Inc., is incorporated under the laws of Delaware in 1985. On May 30, 1997, the Company's name was changed from American Brands, Inc. to Fortune Brands, Inc. Following the spin-off on October 3, 2011, the Company became a standalone Spirits Company under the name Beam Inc. It is a premium spirits company that makes and sells branded distilled spirits products in major markets. The Company's three reportable segments are the geographic regions of North America, EMEA and APSA. Each segment is engaged in the manufacture and sale of distilled spirits products. Its principal products include bourbon whiskey, Scotch whisky, Canadian whisky, tequila, cognac, rum, cordials, and ready-to-drink pre-mixed cocktails. The Company's portfolio consists of brands it identifies as Power Brands, Rising Stars, Local Jewels and Value Creators. The Power Brands are the core brand equities, with its reach in premium categories and large annual sales volume. Rising Stars are smaller premium brands in priority markets. Brands identified as Local Jewels act as Power Brands in local markets. Value Creators include a variety of brands competing across multiple categories. The principal markets for its spirits products are the United States, Australia, Germany, Spain, the United Kingdom, and Canada, and continues to invest in emerging markets such as India, Brazil, Mexico, Russia, Central Europe, Asia, and other geographies. The Company operates its business on the basis of geographical regions, consisting of North America, Europe/Middle East/Africa, and Asia-Pacific/South America. Its peak season for business is the fourth calendar quarter due to holiday buying. Raw materials for the production, storage and aging of distilled products are corn and other grains for whiskies and other spirits, agave for tequila, molasses for rum, grapes for cognac and fortified wines, new or used oak barrels, and plastic and glass for bottles. These materials are generally readily available from a number of sources, except that new oak barrels are available from only a few sources. The Company uses different business models to market and distribute its products in different regions of the world. In the U.S., it sells products either to wholesale distributors for resale to retail outlets or, in those states that control alcohol sales, to state governments who then sell them to retail customers and consumers. It competes on the basis of product quality, brand image, innovation, price, and service in response to consumer preferences. The production, storage, transportation, distribution and sale of its products are subject to regulation by federal, state, local, and foreign authorities.

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