Return on Equity (ROE)
since 2005
Calculation
Monsanto Co., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Monsanto Company1 | ÷ | Total Monsanto Company shareowners’ equity1 | |
|---|---|---|---|---|---|---|---|
| Aug 31, 2017 | 35.10% | = | 100 | × | 2,260) | ÷ | 6,438) |
| Aug 31, 2016 | 29.47% | = | 100 | × | 1,336) | ÷ | 4,534) |
| Aug 31, 2015 | 33.10% | = | 100 | × | 2,314) | ÷ | 6,990) |
| Aug 31, 2014 | 34.79% | = | 100 | × | 2,740) | ÷ | 7,875) |
| Aug 31, 2013 | 19.76% | = | 100 | × | 2,482) | ÷ | 12,559) |
| Aug 31, 2012 | 17.28% | = | 100 | × | 2,045) | ÷ | 11,833) |
| Aug 31, 2011 | 13.92% | = | 100 | × | 1,607) | ÷ | 11,545) |
| Aug 31, 2010 | 10.98% | = | 100 | × | 1,109) | ÷ | 10,099) |
| Aug 31, 2009 | 20.97% | = | 100 | × | 2,109) | ÷ | 10,056) |
| Aug 31, 2008 | 21.59% | = | 100 | × | 2,024) | ÷ | 9,374) |
| Aug 31, 2007 | 13.23% | = | 100 | × | 993) | ÷ | 7,503) |
| Aug 31, 2006 | 10.56% | = | 100 | × | 689) | ÷ | 6,525) |
| Aug 31, 2005 | 4.54% | = | 100 | × | 255) | ÷ | 5,613) |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$ in millions
Between 2005 and 2017, the Return on Equity (ROE) exhibited a significant long-term upward trend, evolving from a modest 4.54% to a peak of 35.10%. This trajectory is characterized by an initial growth period, a mid-term volatility phase, and a final period of aggressive expansion.
- Net Income Performance
- Net income attributable to the company demonstrated strong overall growth, increasing from 255 million USD in 2005 to 2,260 million USD in 2017. The growth was largely consistent, though a notable peak was reached in 2014 at 2,740 million USD. A temporary contraction occurred in 2016, where income fell to 1,336 million USD, before recovering in the final year of the period.
- Shareowners' Equity Evolution
- Total shareowners' equity followed a divergent path compared to net income. Equity grew steadily from 5,613 million USD in 2005 to a peak of 12,559 million USD in 2013. Subsequently, a sharp decline in the equity base was observed between 2014 and 2016, with values falling to 4,534 million USD. A moderate recovery occurred in 2017, bringing the balance to 6,438 million USD.
- ROE Driver Analysis
- The expansion of ROE occurred in two distinct stages. From 2005 to 2013, the increase in ROE was primarily driven by the growth in net income, despite a concurrent increase in the equity base. However, the surge in ROE between 2014 and 2017—where the ratio jumped from 19.76% to over 30%—was primarily driven by the substantial reduction in total shareowners' equity. This reduction in the denominator significantly amplified the ROE, maintaining the ratio at elevated levels even during the net income dip of 2016.
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Comparison to Competitors
Monsanto Co., ROE, long-term trends, comparison to competitors
| Monsanto Co. | lululemon athletica inc. | Nike Inc. | |
|---|---|---|---|
| Aug 31, 2017 | 35.10% | 22.31% | 34.17% |
| Aug 31, 2016 | 29.47% | 25.89% | 30.67% |
| Aug 31, 2015 | 33.10% | 21.94% | 25.76% |
| Aug 31, 2014 | 34.79% | 25.49% | 24.88% |
| Aug 31, 2013 | 19.76% | 30.49% | 22.28% |
| Aug 31, 2012 | 17.28% | 30.61% | 21.41% |
| Aug 31, 2011 | 13.92% | 31.21% | 21.67% |
| Aug 31, 2010 | 10.98% | 25.00% | 19.55% |
| Aug 31, 2009 | 20.97% | 25.42% | 17.10% |
| Aug 31, 2008 | 21.59% | 27.53% | 24.07% |
| Aug 31, 2007 | 13.23% | — | 21.23% |
| Aug 31, 2006 | 10.56% | — | 22.15% |
| Aug 31, 2005 | 4.54% | — | 21.47% |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Sector (Consumer Durables & Apparel)
Monsanto Co., ROE, long-term trends, comparison to sector (consumer durables & apparel)
| Monsanto Co. | Consumer Durables & Apparel | |
|---|---|---|
| Aug 31, 2017 | 35.10% | 33.00% |
| Aug 31, 2016 | 29.47% | 30.30% |
| Aug 31, 2015 | 33.10% | 25.46% |
| Aug 31, 2014 | 34.79% | 24.94% |
| Aug 31, 2013 | 19.76% | 22.88% |
| Aug 31, 2012 | 17.28% | 21.92% |
| Aug 31, 2011 | 13.92% | 22.03% |
| Aug 31, 2010 | 10.98% | 19.68% |
| Aug 31, 2009 | 20.97% | 17.25% |
| Aug 31, 2008 | 21.59% | 24.12% |
| Aug 31, 2007 | 13.23% | 21.23% |
| Aug 31, 2006 | 10.56% | 22.15% |
| Aug 31, 2005 | 4.54% | 21.47% |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Industry (Consumer Discretionary)
Monsanto Co., ROE, long-term trends, comparison to industry (consumer discretionary)
| Monsanto Co. | Consumer Discretionary | |
|---|---|---|
| Aug 31, 2017 | 35.10% | 22.85% |
| Aug 31, 2016 | 29.47% | 28.74% |
| Aug 31, 2015 | 33.10% | 29.03% |
| Aug 31, 2014 | 34.79% | 20.60% |
| Aug 31, 2013 | 19.76% | 20.34% |
| Aug 31, 2012 | 17.28% | 21.97% |
| Aug 31, 2011 | 13.92% | 34.92% |
| Aug 31, 2010 | 10.98% | 24.34% |
| Aug 31, 2009 | 20.97% | 25.32% |
| Aug 31, 2008 | 21.59% | 1.64% |
| Aug 31, 2007 | 13.23% | 16.06% |
| Aug 31, 2006 | 10.56% | 3.84% |
| Aug 31, 2005 | 4.54% | 19.92% |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).