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DSM Firmenich AG (XAMS:DSFIR) Return-on-Tangible-Equity : -10.18% (As of Dec. 2023)


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What is DSM Firmenich AG 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. DSM Firmenich AG's annualized net income for the quarter that ended in Dec. 2023 was €-448 Mil. DSM Firmenich AG's average shareholder tangible equity for the quarter that ended in Dec. 2023 was €4,400 Mil. Therefore, DSM Firmenich AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was -10.18%.

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

XAMS:DSFIR' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 30.38   Med: 37.07   Max: 44.54
Current: 44.54

During the past 3 years, DSM Firmenich AG's highest Return-on-Tangible-Equity was 44.54%. The lowest was 30.38%. And the median was 37.07%.

XAMS:DSFIR's Return-on-Tangible-Equity is ranked better than
91.19% of 1793 companies
in the Consumer Packaged Goods industry
Industry Median: 7.73 vs XAMS:DSFIR: 44.54

DSM Firmenich AG Return-on-Tangible-Equity Historical Data

The historical data trend for DSM Firmenich AG'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.

DSM Firmenich AG Return-on-Tangible-Equity Chart

DSM Firmenich AG Annual Data
Trend Dec21 Dec22 Dec23
Return-on-Tangible-Equity
- 30.38 43.76

DSM Firmenich AG Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23
Return-on-Tangible-Equity - 15.43 43.84 92.36 -10.18

Competitive Comparison of DSM Firmenich AG's Return-on-Tangible-Equity

For the Household & Personal Products subindustry, DSM Firmenich AG'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.


DSM Firmenich AG's Return-on-Tangible-Equity Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, DSM Firmenich AG's Return-on-Tangible-Equity distribution charts can be found below:

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



DSM Firmenich AG Return-on-Tangible-Equity Calculation

DSM Firmenich AG's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=2137/( (5596+4170 )/ 2 )
=2137/4883
=43.76 %

DSM Firmenich AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Jun. 2023 )(Q: Dec. 2023 )
=-448/( (4629+4170)/ 2 )
=-448/4399.5
=-10.18 %

* 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 two times the semi-annual (Dec. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


DSM Firmenich AG  (XAMS:DSFIR) 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.


DSM Firmenich AG Return-on-Tangible-Equity Related Terms

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DSM Firmenich AG (XAMS:DSFIR) Business Description

Comparable Companies
Traded in Other Exchanges
Address
Wurmisweg 576, Kaiseraugst, CHE, 4303
DSM-Firmenich is a global science-based company formed in 2023 through the merger of DSM, a Dutch nutrition, health, and sustainable living player, and Switzerland-based Firmenich, the third-largest player in the flavor and fragrance market. The company serves a wide range of end-consumer markets providing nutrition solutions ranging from animal feed to medical and early-life nutrition, fragrances for personal-, home-, and laundry-care brands, prestige perfumes, and other ingredients for food and beverage, home, and personal care. DSM-Firmenich has nearly 30,000 employees, with more than 2,000 scientists and engineers spread across 15 research and development facilities.

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