Seaboard (AMEX:SEB) ROA %

: 11.40% (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. Seaboard's annualized Net Income for the quarter that ended in Dec. 2022 was $892 Mil. Seaboard's average Total Assets over the quarter that ended in Dec. 2022 was $7,823 Mil. Therefore, Seaboard's annualized ROA % for the quarter that ended in Dec. 2022 was 11.40%.

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

SEB' s ROA % Range Over the Past 10 Years
Min: 0.06 Med: 5.63 Max: 10.32
Current: 7.51

During the past 13 years, Seaboard's highest ROA % was 10.32%. The lowest was 0.06%. And the median was 5.63%.

SEB's ROA % is ranked better than
83.85% of 514 companies
in the Conglomerates industry
Industry Median: 2.55 vs SEB: 7.51

Seaboard ROA % Historical Data

The historical data trend for Seaboard'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.

Seaboard Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROA %

0.06

4.92

4.44

8.20

7.53

Seaboard Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
ROA %																6.56	5.43	5.58	7.51	11.40

Competitive Comparison

For the Conglomerates subindustry, Seaboard'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.

Annual Data Quarterly Data

Seaboard ROA % Distribution

For the Conglomerates industry and Industrials sector, Seaboard's ROA % distribution charts can be found below:

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

Seaboard ROA % Calculation

Seaboard'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 )
	=	580	/	( (7503	+	7902)	/ 2 )
	=	580	/	7702.5
	=	7.53 %

Seaboard'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 )
	=	892	/	( (7744	+	7902)	/ 2 )
	=	892	/	7823
	=	11.40 %

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.

Seaboard (AMEX:SEB) 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 banks 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
=	892	/	7823
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(892 / 10664)	*	(10664 / 7823)
=	Net Margin %	*	Asset Turnover
=	8.36 %	*	1.3632
=	11.40 %

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.

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.

Seaboard ROA % Related Terms

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

Seaboard (AMEX:SEB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Seaboard Corp (AMEX:SEB) » Definitions » ROA %

Comparable Companies

Traded in Other Exchanges

S0V:Germany

Address

9000 West 67th Street, Merriam, KS, USA, 66202

Website

https://www.seaboardcorp.com

Seaboard Corp is a conglomerate of food production and transportation businesses. The group operates six business segments: pork, commodity trading and milling, marine, sugar and alcohol, power, and turkey. The group offers hog production and pork processing, biodiesel production, agriculture commodity trading, agriculture commodity processing and logistics, grain and feed milling, cargo shipping, sugarcane production, alcohol production, sugar refining, power production, turkey production and processing, and production of jalapeno peppers. The largest end markets by revenue are the Caribbean and Central and South America.

Executives

Frances B Shifman	director	9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Vacas Jacques Emma Alejandra	officer: Assistant Treasurer	9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
James T Hubler	officer: Assoc. Gen Counsel & Asst. Sec	9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Benjamin R Hodes	officer: Vice President, Finance	9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Elizabeth A Loudon	officer: Vice President, Tax	9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
John B Warner	officer: Vice President-Human Resources	9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Adriana N Hoskins	officer: Vice President and Treasurer	9000 WEST 67TH STREET, MERRIAM KS 66202
Peter B Brown	officer: Pres. & CEO, Seaboard Foods	9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Jacob A. Bresky	officer: Vice Pres-Business Development	9000 WEST 67TH STREET, 3RD FLOOR, SHAWNEE MISSION KS 66202
Ellen S. Bresky	director, 10 percent owner	9000 WEST 67TH STREET, 3RD FLOOR, SHAWNEE MISSION KS 66202
Douglas W Baena	director
Darwin E Sand	officer: Pres. & CEO, Seaboard Foods	9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Winfield Ivan J. Jr	officer: VP-Information Technology	9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Paul M. Squires	director	SEABOARD FLOUR, 1320 CENTRE STREET, SUITE 200, NEWTON CENTER MA 02459
Michael D. Trollinger	officer: VP, Corporate Controller, CAO	9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202