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Samvardhana Motherson International (NSE:MOTHERSON) Return-on-Tangible-Equity : 30.14% (As of Mar. 2024)


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What is Samvardhana Motherson International 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. Samvardhana Motherson International's annualized net income for the quarter that ended in Mar. 2024 was ₹54,873 Mil. Samvardhana Motherson International's average shareholder tangible equity for the quarter that ended in Mar. 2024 was ₹182,036 Mil. Therefore, Samvardhana Motherson International's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 30.14%.

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

NSE:MOTHERSON' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.24   Med: 21.91   Max: 37.43
Current: 16.29

During the past 13 years, Samvardhana Motherson International's highest Return-on-Tangible-Equity was 37.43%. The lowest was 7.24%. And the median was 21.91%.

NSE:MOTHERSON's Return-on-Tangible-Equity is ranked better than
73.39% of 1244 companies
in the Vehicles & Parts industry
Industry Median: 8.715 vs NSE:MOTHERSON: 16.29

Samvardhana Motherson International Return-on-Tangible-Equity Historical Data

The historical data trend for Samvardhana Motherson International'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.

Samvardhana Motherson International Return-on-Tangible-Equity Chart

Samvardhana Motherson International Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.24 13.65 7.24 9.04 15.30

Samvardhana Motherson International Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Return-on-Tangible-Equity 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 15.11 13.88 5.56 14.95 30.14

Competitive Comparison of Samvardhana Motherson International's Return-on-Tangible-Equity

For the Auto Parts subindustry, Samvardhana Motherson International'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.


Samvardhana Motherson International's Return-on-Tangible-Equity Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Samvardhana Motherson International's Return-on-Tangible-Equity distribution charts can be found below:

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



Samvardhana Motherson International Return-on-Tangible-Equity Calculation

Samvardhana Motherson International's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2024 )  (A: Mar. 2023 )(A: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2024 )  (A: Mar. 2023 )(A: Mar. 2024 )
=27162/( (173108.9+182036 )/ 2 )
=27162/177572.45
=15.30 %

Samvardhana Motherson International's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=54872.8/( (0+182036)/ 1 )
=54872.8/182036
=30.14 %

* 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 (Mar. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Samvardhana Motherson International  (NSE:MOTHERSON) 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.


Samvardhana Motherson International Return-on-Tangible-Equity Related Terms

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Samvardhana Motherson International (NSE:MOTHERSON) Business Description

Traded in Other Exchanges
Address
Noida-Greater Noida Expressway, 11th Floor, Plot No. 1, Sector-127, Noida, UP, IND, 201301
Samvardhana Motherson International Ltd is a manufacturer of automotive wiring harnesses and plastic components and modules. The products include wiring harnesses, mirrors for passenger cars, injection molded products, modules including dashboards, door trims, bumpers, blow moulded components, liquid silicone rubber molded components, injection molding tools, extruded rubber products, precision machined metal components, and waste recycling systems. The Company has Four reportable segments such as Wiring Harness, Modules and polymer products, Vision systems and Emerging businesses. The Company makes majority of the revenue from Modules and polymer products segment which is engaged in manufacturing and supplies of plastic parts and system modules for vehicle interiors and exteriors.

Samvardhana Motherson International (NSE:MOTHERSON) Headlines

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