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Fan Milk (XGHA:FML) ROE % : -45.57% (As of Dec. 2022)


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What is Fan Milk ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Fan Milk's annualized net income for the quarter that ended in Dec. 2022 was GHS-99.1 Mil. Fan Milk's average Total Stockholders Equity over the quarter that ended in Dec. 2022 was GHS217.5 Mil. Therefore, Fan Milk's annualized ROE % for the quarter that ended in Dec. 2022 was -45.57%.

The historical rank and industry rank for Fan Milk's ROE % or its related term are showing as below:

XGHA:FML's ROE % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 7
* Ranked among companies with meaningful ROE % only.

Fan Milk ROE % Historical Data

The historical data trend for Fan Milk'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.

Fan Milk ROE % Chart

Fan Milk Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec21 Dec22
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.88 5.65 10.12 -5.31 -18.42

Fan Milk Quarterly Data
Jun15 Sep15 Dec15 Mar16 Dec16 Mar17 Dec17 Sep18 Dec18 Sep19 Dec19 Sep20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 0.27 -1.60 -6.32 -20.33 -45.57

Competitive Comparison of Fan Milk's ROE %

For the Packaged Foods subindustry, Fan Milk'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.


Fan Milk's ROE % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Fan Milk's ROE % falls into.



Fan Milk ROE % Calculation

Fan Milk's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=-41.596/( (246.675+205.079)/ 2 )
=-41.596/225.877
=-18.42 %

Fan Milk's annualized ROE % for the quarter that ended in Dec. 2022 is calculated as

ROE %=Net Income (Q: Dec. 2022 )/( (Total Stockholders Equity (Q: Sep. 2022 )+Total Stockholders Equity (Q: Dec. 2022 ))/ count )
=-99.096/( (229.853+205.079)/ 2 )
=-99.096/217.466
=-45.57 %

* 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 four times the quarterly (Dec. 2022) net income data. ROE % is displayed in the 30-year financial page.


Fan Milk  (XGHA:FML) 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: Dec. 2022 )
=Net Income/Total Stockholders Equity
=-99.096/217.466
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-99.096 / 619.028)*(619.028 / 590.372)*(590.372 / 217.466)
=Net Margin %*Asset Turnover*Equity Multiplier
=-16.01 %*1.0485*2.7148
=ROA %*Equity Multiplier
=-16.79 %*2.7148
=-45.57 %

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: Dec. 2022 )
=Net Income/Total Stockholders Equity
=-99.096/217.466
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-99.096 / -66.94) * (-66.94 / -74.22) * (-74.22 / 619.028) * (619.028 / 590.372) * (590.372 / 217.466)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.4804 * 0.9019 * -11.99 % * 1.0485 * 2.7148
=-45.57 %

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. 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.


Fan Milk ROE % Related Terms

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Fan Milk Business Description

Traded in Other Exchanges
N/A
Address
Airport Commercial Centre, 2nd Floor, Grand Oyeman Building, Accra, GHA
Fan Milk PLC engages in the manufacturing and distribution of dairy products and fruit drinks. The company's milk-based products consist of frozen ice creams, chocolate, and yoghurt that includes FanYogo (yoghurt), FanChoco (chocolate), and FanIce (ice cream). Its fruit-based products include FanDango (fruit drink) and FanPop. It distributes its products through independent distributors and agents. The majority of the revenue is derived from the manufacturing and distribution of dairy products and fruit drinks.

Fan Milk Headlines

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