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Riso Kyoiku Co (TSE:4714) ROE % : 18.86% (As of Nov. 2023)


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What is Riso Kyoiku Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Riso Kyoiku Co's annualized net income for the quarter that ended in Nov. 2023 was 円1,493 Mil. Riso Kyoiku Co's average Total Stockholders Equity over the quarter that ended in Nov. 2023 was 円7,919 Mil. Therefore, Riso Kyoiku Co's annualized ROE % for the quarter that ended in Nov. 2023 was 18.86%.

The historical rank and industry rank for Riso Kyoiku Co's ROE % or its related term are showing as below:

TSE:4714' s ROE % Range Over the Past 10 Years
Min: -156.47   Med: 21.32   Max: 54.67
Current: 20.17

During the past 13 years, Riso Kyoiku Co's highest ROE % was 54.67%. The lowest was -156.47%. And the median was 21.32%.

TSE:4714's ROE % is ranked better than
80.62% of 258 companies
in the Education industry
Industry Median: 5.46 vs TSE:4714: 20.17

Riso Kyoiku Co ROE % Historical Data

The historical data trend for Riso Kyoiku Co'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.

Riso Kyoiku Co ROE % Chart

Riso Kyoiku Co Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.15 31.56 8.75 28.46 15.03

Riso Kyoiku Co Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
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 17.56 20.47 -13.87 60.29 18.86

Competitive Comparison of Riso Kyoiku Co's ROE %

For the Education & Training Services subindustry, Riso Kyoiku Co'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.


Riso Kyoiku Co's ROE % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Riso Kyoiku Co's ROE % distribution charts can be found below:

* The bar in red indicates where Riso Kyoiku Co's ROE % falls into.



Riso Kyoiku Co ROE % Calculation

Riso Kyoiku Co's annualized ROE % for the fiscal year that ended in Feb. 2023 is calculated as

ROE %=Net Income (A: Feb. 2023 )/( (Total Stockholders Equity (A: Feb. 2022 )+Total Stockholders Equity (A: Feb. 2023 ))/ count )
=1492.552/( (10513.692+9351.652)/ 2 )
=1492.552/9932.672
=15.03 %

Riso Kyoiku Co's annualized ROE % for the quarter that ended in Nov. 2023 is calculated as

ROE %=Net Income (Q: Nov. 2023 )/( (Total Stockholders Equity (Q: Aug. 2023 )+Total Stockholders Equity (Q: Nov. 2023 ))/ count )
=1493.476/( (7712.714+8125.128)/ 2 )
=1493.476/7918.921
=18.86 %

* 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 (Nov. 2023) net income data. ROE % is displayed in the 30-year financial page.


Riso Kyoiku Co  (TSE:4714) 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: Nov. 2023 )
=Net Income/Total Stockholders Equity
=1493.476/7918.921
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1493.476 / 31321.084)*(31321.084 / 17656.134)*(17656.134 / 7918.921)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.77 %*1.7739*2.2296
=ROA %*Equity Multiplier
=8.46 %*2.2296
=18.86 %

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: Nov. 2023 )
=Net Income/Total Stockholders Equity
=1493.476/7918.921
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1493.476 / 2401.784) * (2401.784 / 2552.548) * (2552.548 / 31321.084) * (31321.084 / 17656.134) * (17656.134 / 7918.921)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6218 * 0.9409 * 8.15 % * 1.7739 * 2.2296
=18.86 %

Note: The net income data used here is four times the quarterly (Nov. 2023) net income data. The Revenue data used here is four times the quarterly (Nov. 2023) 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.


Riso Kyoiku Co ROE % Related Terms

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Riso Kyoiku Co (TSE:4714) Business Description

Traded in Other Exchanges
N/A
Address
3-1-40 Mejiro, Toshima-ku, Tokyo, JPN
Riso Kyoiku Co Ltd is a Japan-based company primarily engaged in the provision of private education services. It operates cram schools (Juku) and provides academic tutoring and exam preparation on a one-on-one basis. The company's classes are for elementary, junior, and high school students. Geographically, the activities are carried out the region of Japan.

Riso Kyoiku Co (TSE:4714) Headlines

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