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CF Industries Holdings (BSP:C1FI34) ROA %

: 7.82% (As of Dec. 2023)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. CF Industries Holdings's annualized Net Income for the quarter that ended in Dec. 2023 was R$5,370 Mil. CF Industries Holdings's average Total Assets over the quarter that ended in Dec. 2023 was R$68,662 Mil. Therefore, CF Industries Holdings's annualized ROA % for the quarter that ended in Dec. 2023 was 7.82%.

The historical rank and industry rank for CF Industries Holdings's ROA % or its related term are showing as below:

BSP:C1FI34' s ROA % Range Over the Past 10 Years
Min: -1.99   Med: 4.91   Max: 26.05
Current: 11.19

During the past 13 years, CF Industries Holdings's highest ROA % was 26.05%. The lowest was -1.99%. And the median was 4.91%.

BSP:C1FI34's ROA % is ranked better than
85.66% of 251 companies
in the Agriculture industry
Industry Median: 2.49 vs BSP:C1FI34: 11.19

CF Industries Holdings ROA % Historical Data

The historical data trend for CF Industries Holdings'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.

CF Industries Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.08 2.92 7.87 25.11 10.65

CF Industries Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 25.88 16.71 15.10 4.89 7.82

Competitive Comparison

For the Agricultural Inputs subindustry, CF Industries Holdings'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.


CF Industries Holdings ROA % Distribution

For the Agriculture industry and Basic Materials sector, CF Industries Holdings's ROA % distribution charts can be found below:

* The bar in red indicates where CF Industries Holdings's ROA % falls into.



CF Industries Holdings ROA % Calculation

CF Industries Holdings's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=7472.195/( (69832.01+70439.525)/ 2 )
=7472.195/70135.7675
=10.65 %

CF Industries Holdings's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=5370.18/( (66884.814+70439.525)/ 2 )
=5370.18/68662.1695
=7.82 %

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


CF Industries Holdings  (BSP:C1FI34) 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. 2023 )
=Net Income/Total Assets
=5370.18/68662.1695
=(Net Income / Revenue)*(Revenue / Total Assets)
=(5370.18 / 30790.344)*(30790.344 / 68662.1695)
=Net Margin %*Asset Turnover
=17.44 %*0.4484
=7.82 %

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.

* 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.


CF Industries Holdings ROA % Related Terms

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CF Industries Holdings (BSP:C1FI34) Business Description

Traded in Other Exchanges
Address
4 Parkway North, Suite 400, Deerfield, IL, USA, 60015
CF Industries is a leading producer and distributor of nitrogen, which is primarily used in fertilizers. The company operates nitrogen manufacturing plants primarily in North America. CF also produces nitrogen in the United Kingdom and holds a joint venture interest in a nitrogen production facility in Trinidad and Tobago. CF makes nitrogen primarily using low-cost U.S. natural gas as its feedstock, making CF one of the lowest-cost nitrogen producers globally. The company is also investing in carbon-free blue and green ammonia, which can be used an alternative fuel to hydrogen or as a means to transport hydrogen.

CF Industries Holdings (BSP:C1FI34) Headlines

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