Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Farmer Bros Co's annualizedNet Income for the quarter that ended in Dec. 2023 was $10.8 Mil. Farmer Bros Co's average total tangible assets for the quarter that ended in Dec. 2023 was $167.4 Mil. Therefore, Farmer Bros Co's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was 6.46%.
The historical rank and industry rank for Farmer Bros Co's Return-on-Tangible-Asset or its related term are showing as below:
FARM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -31.14 Med: -4.73 Max: 24.06
Current: -24.82
During the past 13 years, Farmer Bros Co's highest Return-on-Tangible-Asset was 24.06%. The lowest was -31.14%. And the median was -4.73%.
FARM's Return-on-Tangible-Asset is ranked worse than 91.9% of 1901
companies
in the Consumer Packaged Goods industry
Industry Median: 3.19
vs FARM: -24.82
Farmer Bros Co Return-on-Tangible-Asset Historical Data
The historical data trend for Farmer Bros Co's Return-on-Tangible-Asset 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.
Competitive Comparison of Farmer Bros Co's Return-on-Tangible-Asset
For the Packaged Foods subindustry, Farmer Bros Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Farmer Bros Co's Return-on-Tangible-Asset Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Farmer Bros Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Farmer Bros Co's Return-on-Tangible-Asset falls into.
Farmer Bros Co Return-on-Tangible-Asset Calculation
Farmer Bros Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Jun. 2023 is calculated as:
* 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-Asset, the net income of the last fiscal year and the average total tangible assets 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.
Farmer Bros Co (NAS:FARM) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Farmer Bros Co Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Farmer Bros Co's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Farmer Bros Co (Farmer Bros Co) Business Description
Farmer Bros Co is engaged in manufacturing, wholesaling, and distributing coffee, tea, and culinary products to food-service establishments and retailers in the United States. The company's customers include restaurants, hotels, offices, casinos, convenience stores, healthcare facilities, and other food-service providers. The company's product categories consist of roast and ground coffee, frozen liquid coffee, flavoured and unflavored iced and hot teas, culinary products, spices, and other beverages including cappuccino, cocoa, granitas, and ready-to-drink iced coffee. The products are sold under the brands of Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, and China Mist.
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