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AAYYY (Australian Agricultural Co) ROE % : 3.12% (As of Sep. 2024)


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What is Australian Agricultural Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Australian Agricultural Co's annualized net income for the quarter that ended in Sep. 2024 was $32.0 Mil. Australian Agricultural Co's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $1,023.2 Mil. Therefore, Australian Agricultural Co's annualized ROE % for the quarter that ended in Sep. 2024 was 3.12%.

The historical rank and industry rank for Australian Agricultural Co's ROE % or its related term are showing as below:

AAYYY' s ROE % Range Over the Past 10 Years
Min: -16.3   Med: 2.42   Max: 11.38
Current: 2.29

During the past 13 years, Australian Agricultural Co's highest ROE % was 11.38%. The lowest was -16.30%. And the median was 2.42%.

AAYYY's ROE % is ranked worse than
67.7% of 1836 companies
in the Consumer Packaged Goods industry
Industry Median: 6.795 vs AAYYY: 2.29

Australian Agricultural Co ROE % Historical Data

The historical data trend for Australian Agricultural Co's ROE % 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.

Australian Agricultural Co ROE % Chart

Australian Agricultural Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.34 5.11 11.16 0.30 -6.09

Australian Agricultural Co Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
ROE % Get a 7-Day Free Trial 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 7.07 -6.32 -13.73 1.48 3.12

Competitive Comparison of Australian Agricultural Co's ROE %

For the Farm Products subindustry, Australian Agricultural Co's ROE %, along with its competitors' market caps and ROE % 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.


Australian Agricultural Co's ROE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Australian Agricultural Co's ROE % distribution charts can be found below:

* The bar in red indicates where Australian Agricultural Co's ROE % falls into.



Australian Agricultural Co ROE % Calculation

Australian Agricultural Co's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=-62.045/( (1042.781+994.677)/ 2 )
=-62.045/1018.729
=-6.09 %

Australian Agricultural Co's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=31.958/( (994.677+1051.771)/ 2 )
=31.958/1023.224
=3.12 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Australian Agricultural Co  (OTCPK:AAYYY) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=31.958/1023.224
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(31.958 / 264.82)*(264.82 / 1592.0085)*(1592.0085 / 1023.224)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.07 %*0.1663*1.5559
=ROA %*Equity Multiplier
=2.01 %*1.5559
=3.12 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=31.958/1023.224
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (31.958 / 50.45) * (50.45 / 64.334) * (64.334 / 264.82) * (264.82 / 1592.0085) * (1592.0085 / 1023.224)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6335 * 0.7842 * 24.29 % * 0.1663 * 1.5559
=3.12 %

Note: The net income data used here is two times the semi-annual (Sep. 2024) net income data. The Revenue data used here is two times the semi-annual (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Australian Agricultural Co ROE % Related Terms

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


Australian Agricultural Co Business Description

Traded in Other Exchanges
Address
76 Skyring Terrace, Level 1, Tower A, Gasworks Plaza, Newstead, Brisbane, QLD, AUS, 4006
Australian Agricultural Co Ltd raises cattle in Australia to process and export all over the world. It specializes in grass-fed beef, grain-fed beef, and Japanese-style beef. The company invests in research and technologies to ensure high quality and enhance productivity. The technologies may focus on performance evaluations, feed efficiency, or disease testing. More opportunities for gathering data exist because the cattle are owned throughout the entire supply chain. The company's processing facility works to get the beef out on a timely basis and will turn to third parties in times of shortage. The company distributes the beef by tailoring its route-to-market model to capitalize on regional opportunities.