GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » FMC Corp (NYSE:FMC) » Definitions » ROE %

FMC (FMC) ROE %

: 114.10% (As of Dec. 2023)
View and export this data going back to 1986. Start your Free Trial

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. FMC's annualized net income for the quarter that ended in Dec. 2023 was $4,394 Mil. FMC's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $3,851 Mil. Therefore, FMC's annualized ROE % for the quarter that ended in Dec. 2023 was 114.10%.

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

FMC' s ROE % Range Over the Past 10 Years
Min: 10.94   Med: 21.41   Max: 36.91
Current: 36.91

During the past 13 years, FMC's highest ROE % was 36.91%. The lowest was 10.94%. And the median was 21.41%.

FMC's ROE % is ranked better than
96.73% of 245 companies
in the Agriculture industry
Industry Median: 5.76 vs FMC: 36.91

FMC ROE % Historical Data

The historical data trend for FMC'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.

FMC Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.89 20.11 24.30 22.65 33.93

FMC Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % 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 Premium Member Only Premium Member Only Premium Member Only 33.37 22.90 3.58 -0.42 114.10

Competitive Comparison

For the Agricultural Inputs subindustry, FMC'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.


FMC ROE % Distribution

For the Agriculture industry and Basic Materials sector, FMC's ROE % distribution charts can be found below:

* The bar in red indicates where FMC's ROE % falls into.



FMC ROE % Calculation

FMC's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=1321.5/( (3377.9+4410.9)/ 2 )
=1321.5/3894.4
=33.93 %

FMC's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=4394/( (3290.9+4410.9)/ 2 )
=4394/3850.9
=114.10 %

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


FMC  (NYSE:FMC) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=4394/3850.9
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4394 / 4584.4)*(4584.4 / 11441.3)*(11441.3 / 3850.9)
=Net Margin %*Asset Turnover*Equity Multiplier
=95.85 %*0.4007*2.9711
=ROA %*Equity Multiplier
=38.41 %*2.9711
=114.10 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=4394/3850.9
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4394 / -173.6) * (-173.6 / 656.8) * (656.8 / 4584.4) * (4584.4 / 11441.3) * (11441.3 / 3850.9)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -25.3111 * -0.2643 * 14.33 % * 0.4007 * 2.9711
=114.10 %

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


FMC ROE % Related Terms

Thank you for viewing the detailed overview of FMC's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


FMC (FMC) Business Description

Traded in Other Exchanges
Address
2929 Walnut Street, Philadelphia, PA, USA, 19104
FMC is a pure-play global crop protection company with a fairly balanced product portfolio across geographies and crop exposure. Through acquisitions, FMC is now one of the five largest patented crop protection companies and focuses on the development of new products, including biologicals, through its research and development pipeline.
Executives
Robert C Pallash director 17000 ROTUNDA DRIVE, DEARBORN MI 48120
Jacqueline Scanlan officer: Executive VP & Chief HRO HAEMONETICS CORPORATION, 400 WOOD ROAD, BRAINTREE MA 02184
Ronaldo Pereira officer: EVP, President, FMC Americas 1620 MONK RD, GLADWYNE PA 19035
Nicholas Pfeiffer officer: Corporate Controller 1735 MARKET STREET, PHILADELPHIA PA 19103
Patricia Verduin director ONE CONAGRA DRIVE, OMAHA NE 68102
Mark Douglas officer: Pres., Agricultural Solutions ROHM AND HAAS COMPANY, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106
Vsevolod Rostovtsev officer: VP & Chief Technology Officer 909 TWYCKENHAM ROAD, MEDIA PA 19063
Andrew D Sandifer officer: EVP and CFO FMC CORPORATION, 2929 WALNUT STREET, PHILADELPHIA PA 19104
Michael Finian Reilly officer: EVP, General Counsel & Sec. FMC CORPORATION, 2929 WALNUT STREET, PHILADELPHIA PA 19104
Kathy Lynn Fortmann director INTERNATIONAL FLAVORS & FRAGRANCES INC., 521 WEST 57TH STREET, NEW YORK NY 10019
Kathleen Shelton officer: EVP, Chief Technology Officer 630 UNIVERSITY PLACE, SWARTHMORE PA 19081
Diane Allemang officer: EVP & Chief Marketing Officer 1615 NORTH CLEVELAND STREET, ARLINGTON VA 22201
Carol Anthony Davidson director
Eduardo E Cordeiro director C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Volpe Vincent R Jr director C/O DRESSER-RAND GROUP INC, PAUL CLARK DRIVE, OLEAN NY 14760