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Sanderson Farms ROA %

: 47.48% (As of Apr. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sanderson Farms's annualized Net Income for the quarter that ended in Apr. 2022 was $1,285 Mil. Sanderson Farms's average Total Assets over the quarter that ended in Apr. 2022 was $2,706 Mil. Therefore, Sanderson Farms's annualized ROA % for the quarter that ended in Apr. 2022 was 47.48%.

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

SAFM' s ROA % Range Over the Past 10 Years
Min: 1.56   Med: 14.25   Max: 36.2
Current: 36.2

During the past 13 years, Sanderson Farms's highest ROA % was 36.20%. The lowest was 1.56%. And the median was 14.25%.

SAFM's ROA % is ranked better than
99.02% of 1832 companies
in the Consumer Packaged Goods industry
Industry Median: 3.18 vs SAFM: 36.20

Sanderson Farms ROA % Historical Data

The historical data trend for Sanderson Farms'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.

Sanderson Farms Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.73 3.62 3.10 1.56 21.70

Sanderson Farms Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 19.85 31.69 32.69 31.29 47.48

Competitive Comparison

For the Packaged Foods subindustry, Sanderson Farms'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.

   

Sanderson Farms ROA % Distribution

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

* The bar in red indicates where Sanderson Farms's ROA % falls into.



Sanderson Farms ROA % Calculation

Sanderson Farms's annualized ROA % for the fiscal year that ended in Oct. 2021 is calculated as:

ROA %=Net Income (A: Oct. 2021 )/( (Total Assets (A: Oct. 2020 )+Total Assets (A: Oct. 2021 ))/ count )
=455.089/( (1849.031+2345.033)/ 2 )
=455.089/2097.032
=21.70 %

Sanderson Farms's annualized ROA % for the quarter that ended in Apr. 2022 is calculated as:

ROA %=Net Income (Q: Apr. 2022 )/( (Total Assets (Q: Jan. 2022 )+Total Assets (Q: Apr. 2022 ))/ count )
=1284.76/( (2584.717+2826.514)/ 2 )
=1284.76/2705.6155
=47.48 %

* 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 (Apr. 2022) net income data. ROA % is displayed in the 30-year financial page.


Sanderson Farms  (NAS:SAFM) 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: Apr. 2022 )
=Net Income/Total Assets
=1284.76/2705.6155
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1284.76 / 6158.856)*(6158.856 / 2705.6155)
=Net Margin %*Asset Turnover
=20.86 %*2.2763
=47.48 %

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


Sanderson Farms ROA % Related Terms

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


Sanderson Farms Business Description

Sanderson Farms logo
Traded in Other Exchanges
Address
127 Flynt Road, Laurel, MS, USA, 39443
Sanderson Farms Inc is a dressed-chicken processor in the United States, producing and selling a variety of fresh, frozen, and value-added chicken products to grocers, food-service operators, and distributors. Most revenue is generated in the Southeastern, Southwestern, Northeastern, and Western United States. The company's product portfolio consists of tray packs and large birds, catering to grocery and food-service customers. It sells chill-packed, ice-packed, bulk-packed, and frozen chicken in whole, cut-up, and boneless form under the brand name Sanderson Farms to retailers, distributors, and casual dining operators in the United States.
Executives
Perez Sonia director 127 FLYNT ROAD LAUREL MS 39443
Kelly Green Edith director 3131 DEMOCRAT ROAD BLDG B206 MEMPHIS TN 38118
Barksdale John David director 127 FLYNT ROAD LAUREL MS 39443
Mestayer Suzanne T director 1100 POYDRAS STREET NEW ORLEANS LA 70163
Rigney Tim officer: Controller/Secretary 127 FLYNT ROAD, P.O. BOX 988 LAUREL MS 39441
Mooney Dianne director 7449 ASHLAND LANE BIRMINGHAM AL 35242
Khayat Robert C director PO BOX 1848 UNIVERSITY MS 38677
Banks Fred L Jr director 111 EAST CAPITOL STREET SUITE 600 JACKSON MS 39201-2122
Cooley Toni D director 253 OLD JACKSON ROAD MADISON MS 39110
Bierbusse John director 3500 NORTH LAKE SHORE DRIVE #14A CHICAGO IL 60657
Zacharias Donald W director
Taylor Rowan director
Ritter Charles W Jr director C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998
Pittman Jones Gail director C/O SANDERSON FARMS INC PO BOX 988 225 N 13TH AVE LAUREL MS 39441-0988
Livingston Phil K director C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998

Sanderson Farms Headlines

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