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AgroFresh Solutions (NAS:AGFS) ROA %

: -4.68% (As of Dec. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. AgroFresh Solutions's annualized Net Income for the quarter that ended in Dec. 2022 was $-32.5 Mil. AgroFresh Solutions's average Total Assets over the quarter that ended in Dec. 2022 was $693.3 Mil. Therefore, AgroFresh Solutions's annualized ROA % for the quarter that ended in Dec. 2022 was -4.68%.

The historical rank and industry rank for AgroFresh Solutions's ROA % or its related term are showing as below:

AGFS' s ROA % Range Over the Past 10 Years
Min: -10.89   Med: -3.19   Max: 19066.67
Current: -4.7

During the past 10 years, AgroFresh Solutions's highest ROA % was 19066.67%. The lowest was -10.89%. And the median was -3.19%.

AGFS's ROA % is ranked worse than
81.6% of 1853 companies
in the Consumer Packaged Goods industry
Industry Median: 2.80 vs AGFS: -4.70

AgroFresh Solutions ROA % Historical Data

The historical data trend for AgroFresh Solutions's ROA % 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.

AgroFresh Solutions Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.19 -6.29 -6.75 -0.71 -4.66

AgroFresh Solutions Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
ROA % 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 1.31 -1.69 -10.11 -2.39 -4.68

Competitive Comparison

For the Farm Products subindustry, AgroFresh Solutions's ROA %, along with its competitors' market caps and ROA % 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.

   

AgroFresh Solutions ROA % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, AgroFresh Solutions's ROA % distribution charts can be found below:

* The bar in red indicates where AgroFresh Solutions's ROA % falls in comparison to its industry or sector. The grey bar indicates the ROA %'s extreme value range as defined by GuruFocus.



AgroFresh Solutions ROA % Calculation

AgroFresh Solutions's annualized ROA % for the fiscal year that ended in Dec. 2022 is calculated as:

ROA %=Net Income (A: Dec. 2022 )/( (Total Assets (A: Dec. 2021 )+Total Assets (A: Dec. 2022 ))/ count )
=-33.357/( (732.562+697.71)/ 2 )
=-33.357/715.136
=-4.66 %

AgroFresh Solutions's annualized ROA % for the quarter that ended in Dec. 2022 is calculated as:

ROA %=Net Income (Q: Dec. 2022 )/( (Total Assets (Q: Sep. 2022 )+Total Assets (Q: Dec. 2022 ))/ count )
=-32.464/( (688.931+697.71)/ 2 )
=-32.464/693.3205
=-4.68 %

* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Dec. 2022) net income data. ROA % is displayed in the 30-year financial page.


AgroFresh Solutions  (NAS:AGFS) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Dec. 2022 )
=Net Income/Total Assets
=-32.464/693.3205
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-32.464 / 194.128)*(194.128 / 693.3205)
=Net Margin %*Asset Turnover
=-16.72 %*0.28
=-4.68 %

Note: The Net Income data used here is four times the quarterly (Dec. 2022) net income data. The Revenue data used here is four times the quarterly (Dec. 2022) revenue data.

* 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

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


AgroFresh Solutions ROA % Related Terms

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


AgroFresh Solutions (NAS:AGFS) Business Description

AgroFresh Solutions logo
Traded in Other Exchanges
Address
510-530 Walnut Street, Suite 1350, One Washington Square, Philadelphia, PA, USA, 19106
AgroFresh Solutions Inc creates agricultural technologies that preserve the quality and value of fresh produce and flowers. One such product is SmartFresh, which blocks the effects of ethylene and delays ripening while leaving no visible residue. Geographically, the company operates in North America, Latin America, EMEA, and Asia-Pacific. The majority of sales are recognized in the EMEA region. The firm provides its solutions to growers, packers, and retailers. Its operating segment includes AgroFresh Core and Tecnidex. The company generates maximum revenue from AgroFresh Core segment.
Executives
David Mcinerney director 510-530 WALNUT STREET, SUITE 1350, PHILADELPHIA PA 19106
Peter Sykes director ONE WASHINGTON SQUARE, 510-530 WALNUT STREET, SUITE 1350, PHILADELPHIA PA 19106
John Atkin director 510-530 WALNUT STREET, SUITE 1350, PHILADELPHIA PA 19106
Kay Kuenker director C/O AGROFRESH SOLUTIONS, INC., 510-530 WALNUT ST., SUITE 1350, PHILADELPHIA PA 19106
Lewis Clinton A. Jr. director, officer: CEO C/O ZOETIS INC., 100 CAMPUS DRIVE, FLORHAM PARK NJ 07940
Dow Inc. 10 percent owner 2211 H.H. DOW WAY, MIDLAND MI 48674
Peter Berweger director 475 FIFTH AVENUE, 17TH FLOOR, NEW YORK NY 10017
Paine Schwartz Partners, Llc director, 10 percent owner 475 FIFTH AVENUE, 17TH FLOOR, NEW YORK CITY NY 10017
Paine W Dexter Iii 10 percent owner 950 TOWER LANE, SUITE 1150, FOSTER CITY CA 94404
Paine Schwartz Food Chain Fund V Gp, L.p. 10 percent owner 475 FIFTH AVENUE, 17TH FLOOR, NEW YORK CITY NY 10017
Psp Agfs Holdings, L.p. 10 percent owner 475 FIFTH AVENUE, 17TH FLOOR, NEW YORK CITY NY 10017
Kevin Schwartz 10 percent owner 475 FIFTH AVENUE, 17TH FLOOR, NEW YORK CITY NY 10017
Paine Schwartz Food Chain Fund V Gp, Ltd. 10 percent owner 475 FIFTH AVENUE, 17TH FLOOR, NEW YORK CITY NY 10017
Alexander Corbacho director 475 FIFTH AVENUE, 17TH FLOOR, NEW YORK NY 10017
Graham G Miao officer: Chief Financial Officer C/O PERNIX THERAPEUTICS HOLDINGS, INC., 10 NORTH PARK PLACE, SUITE 201, MORRISTOWN NJ 07960

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