Sumitomo Mitsui Return On Equity vs. Total Debt

SMFG Stock  USD 14.97  0.44  2.86%   
Considering the key profitability indicators obtained from Sumitomo Mitsui's historical financial statements, Sumitomo Mitsui's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Sumitomo Mitsui's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.06568067
Current Value
0.0807
Quarterly Volatility
0.02353405
 
Credit Downgrade
 
Yuan Drop
 
Covid
The current Price To Sales Ratio is estimated to decrease to 0.61. The current Days Sales Outstanding is estimated to decrease to 23.29. At this time, Sumitomo Mitsui's Net Income Applicable To Common Shares is most likely to increase significantly in the upcoming years. The Sumitomo Mitsui's current Interest Income is estimated to increase to about 6.5 T, while Total Other Income Expense Net is projected to decrease to (230.2 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin2.32.19
Sufficiently Up
Slightly volatile
Net Profit Margin0.280.2709
Sufficiently Up
Slightly volatile
Operating Profit Margin0.40.4393
Significantly Down
Slightly volatile
Pretax Profit Margin0.190.3776
Way Down
Pretty Stable
Return On Assets0.00250.0033
Way Down
Slightly volatile
Return On Equity0.08070.0657
Fairly Up
Slightly volatile
For Sumitomo Mitsui profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sumitomo Mitsui to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sumitomo Mitsui Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sumitomo Mitsui's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sumitomo Mitsui Financial over time as well as its relative position and ranking within its peers.
  
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Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sumitomo Mitsui. If investors know Sumitomo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sumitomo Mitsui listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.525
Earnings Share
1.18
Revenue Per Share
567.4788
Quarterly Revenue Growth
0.183
Return On Assets
0.0035
The market value of Sumitomo Mitsui Financial is measured differently than its book value, which is the value of Sumitomo that is recorded on the company's balance sheet. Investors also form their own opinion of Sumitomo Mitsui's value that differs from its market value or its book value, called intrinsic value, which is Sumitomo Mitsui's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sumitomo Mitsui's market value can be influenced by many factors that don't directly affect Sumitomo Mitsui's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sumitomo Mitsui's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sumitomo Mitsui is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sumitomo Mitsui's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Sumitomo Mitsui Financial Total Debt vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sumitomo Mitsui's current stock value. Our valuation model uses many indicators to compare Sumitomo Mitsui value to that of its competitors to determine the firm's financial worth.
Sumitomo Mitsui Financial is rated below average in return on equity category among its peers. It is currently regarded number one company in total debt category among its peers making up about  Huge  of Total Debt per Return On Equity. At this time, Sumitomo Mitsui's Return On Equity is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Sumitomo Mitsui by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Sumitomo Total Debt vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Sumitomo Mitsui

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0714
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

Sumitomo Mitsui

Total Debt

 = 

Bonds

+

Notes

 = 
34.26 T
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Sumitomo Total Debt vs Competition

Sumitomo Mitsui Financial is currently regarded number one company in total debt category among its peers. Total debt of Financials industry is at this time estimated at about 62.78 Trillion. Sumitomo Mitsui totals roughly 34.26 Trillion in total debt claiming about 55% of equities under Financials industry.
Total debt  Valuation  Revenue  Capitalization  Workforce

Sumitomo Mitsui Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sumitomo Mitsui, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sumitomo Mitsui will eventually generate negative long term returns. The profitability progress is the general direction of Sumitomo Mitsui's change in net profit over the period of time. It can combine multiple indicators of Sumitomo Mitsui, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive IncomeT4.2 T
Operating Income1.6 T1.7 T
Income Before Tax1.3 T887.8 B
Total Other Income Expense Net-219.2 B-230.2 B
Net Income962.9 B851.6 B
Income Tax Expense373.7 B270.2 B
Net Income Applicable To Common Shares926.7 B973.1 B
Net Income From Continuing Ops968.7 B648.9 B
Net Interest Income1.9 T1.7 T
Interest Income6.2 T6.5 T
Change To Netincome-970.2 B-921.7 B
Net Income Per Share 724.55  760.78 
Income Quality 0.67  0.63 
Net Income Per E B T 0.72  0.75 

Sumitomo Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Sumitomo Mitsui. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sumitomo Mitsui position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sumitomo Mitsui's important profitability drivers and their relationship over time.

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When determining whether Sumitomo Mitsui Financial is a strong investment it is important to analyze Sumitomo Mitsui's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Sumitomo Mitsui's future performance. For an informed investment choice regarding Sumitomo Stock, refer to the following important reports:
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You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
To fully project Sumitomo Mitsui's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sumitomo Mitsui Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sumitomo Mitsui's income statement, its balance sheet, and the statement of cash flows.
Potential Sumitomo Mitsui investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sumitomo Mitsui investors may work on each financial statement separately, they are all related. The changes in Sumitomo Mitsui's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sumitomo Mitsui's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.