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Deere ROA %

: 4.41% (As of Jan. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Deere's annualized Net Income for the quarter that ended in Jan. 2022 was $3,612 Mil. Deere's average Total Assets over the quarter that ended in Jan. 2022 was $81,864 Mil. Therefore, Deere's annualized ROA % for the quarter that ended in Jan. 2022 was 4.41%.

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

DE' s ROA % Range Over the Past 10 Years
Min: 2.63   Med: 4.14   Max: 7.49
Current: 7.07

During the past 13 years, Deere's highest ROA % was 7.49%. The lowest was 2.63%. And the median was 4.14%.

DE's ROA % is ranked better than
79.7% of 197 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 3.13 vs DE: 7.07

Deere ROA % Historical Data

The historical data trend for Deere'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.

Deere 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 3.49 3.49 4.55 3.72 7.49

Deere Quarterly Data
Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22
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 6.50 9.27 8.35 6.23 4.41

Competitive Comparison

For the Farm & Heavy Construction Machinery subindustry, Deere'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.

   

Deere ROA % Distribution

For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's ROA % distribution charts can be found below:

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



Deere ROA % Calculation

Deere'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 )
=5963/( (75091+84114)/ 2 )
=5963/79602.5
=7.49 %

Deere's annualized ROA % for the quarter that ended in Jan. 2022 is calculated as:

ROA %=Net Income (Q: Jan. 2022 )/( (Total Assets (Q: Oct. 2021 )+Total Assets (Q: Jan. 2022 ))/ count )
=3612/( (84114+79614)/ 2 )
=3612/81864
=4.41 %

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


Deere  (NYSE:DE) 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: Jan. 2022 )
=Net Income/Total Assets
=3612/81864
=(Net Income / Revenue)*(Revenue / Total Assets)
=(3612 / 38276)*(38276 / 81864)
=Net Margin %*Asset Turnover
=9.44 %*0.4676
=4.41 %

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


Deere ROA % Related Terms

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


Deere Business Description

Deere logo
Industry
Address
One John Deere Place, Moline, IL, USA, 61265
Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through a robust dealer network, which includes over 1,900 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.
Executives
Howze Marc A officer: Group Pres., Life Sol & CAO DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Reed Cory J officer: Pres, Ag & Turf Prod & Prec Ag DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Von Pentz Markwart officer: PresAg Turf Small Ag & Turf DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Kalathur Rajesh officer: President, JD Financial & CIO DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Stone John H officer: Pres., WW Const & For & Pow Sy ONE JOHN DEERE PLACE MOLINE IL 61265
Field James M. officer: Pres., C&F Division DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Erwin Tami A. director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Holliday Charles O Jr director 1007 MARKET ST WILMINGTON DE 19898
Jones Clayton M director 400 COLLINS ROAD NE CEDAR RAPIDS IA 52498
Smith Sherry M director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SMITH SHERRY M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Page Gregory R director EATON CENTER 1111 SUPERIOR AVENUE CLEVELAND OH 44114
Heuberger Alan Cletus director 2365 CARILLON POINT KIRKLAND WA 98033
Talton Sheila director C/O ACCO BRANDS CORPORATION 300 TOWER PARKWAY LINCOLNSHIRE IL 60201
Jain Dipak C director 130 EAST RANDOLPH DRIVE CHICAGO IL 60601
Stockton Dmitri L director 777 LONG RIDGE ROAD SYNCHRONY FINANCIAL C/O CORP. SECRETARY STAMFORD CT 06902

Deere Headlines

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