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Seed Co (XZIM:SEED.ZW) ROE % : 73.34% (As of Sep. 2023)


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What is Seed Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Seed Co's annualized net income for the quarter that ended in Sep. 2023 was ZWL174,600 Mil. Seed Co's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was ZWL238,071 Mil. Therefore, Seed Co's annualized ROE % for the quarter that ended in Sep. 2023 was 73.34%.

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

XZIM:SEED.ZW' s ROE % Range Over the Past 10 Years
Min: -8.1   Med: 20.32   Max: 55.43
Current: 55.43

During the past 8 years, Seed Co's highest ROE % was 55.43%. The lowest was -8.10%. And the median was 20.32%.

XZIM:SEED.ZW's ROE % is ranked better than
97.15% of 246 companies
in the Agriculture industry
Industry Median: 5.33 vs XZIM:SEED.ZW: 55.43

Seed Co ROE % Historical Data

The historical data trend for Seed 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.

Seed Co ROE % Chart

Seed Co Annual Data
Trend Mar09 Mar11 Mar12 Mar19 Mar20 Mar21 Mar22 Mar23
ROE %
Get a 7-Day Free Trial 4.44 -7.12 15.77 -8.10 26.87

Seed Co Semi-Annual Data
Mar09 Mar11 Sep11 Mar12 Sep12 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 -114.01 44.10 52.53 23.64 73.34

Competitive Comparison of Seed Co's ROE %

For the Agricultural Inputs subindustry, Seed 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.


Seed Co's ROE % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Seed Co's ROE % distribution charts can be found below:

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



Seed Co ROE % Calculation

Seed Co's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=15792.27/( (37767.456+79761.289)/ 2 )
=15792.27/58764.3725
=26.87 %

Seed Co's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=174600/( (79761.289+396380)/ 2 )
=174600/238070.6445
=73.34 %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.


Seed Co  (XZIM:SEED.ZW) 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. 2023 )
=Net Income/Total Stockholders Equity
=174600/238070.6445
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(174600 / 119420)*(119420 / 433688.372)*(433688.372 / 238070.6445)
=Net Margin %*Asset Turnover*Equity Multiplier
=146.21 %*0.2754*1.8217
=ROA %*Equity Multiplier
=40.27 %*1.8217
=73.34 %

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. 2023 )
=Net Income/Total Stockholders Equity
=174600/238070.6445
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (174600 / 325880) * (325880 / 660) * (660 / 119420) * (119420 / 433688.372) * (433688.372 / 238070.6445)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5358 * 493.7576 * 0.55 % * 0.2754 * 1.8217
=73.34 %

Note: The net income data used here is two times the semi-annual (Sep. 2023) net income data. The Revenue data used here is two times the semi-annual (Sep. 2023) 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.


Seed Co ROE % Related Terms

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


Seed Co (XZIM:SEED.ZW) Business Description

Traded in Other Exchanges
N/A
Address
Shamwari Road, Stapleford, Westgate, P.O. Box WGT 64, Harare, ZWE
Seed Co Ltd is engaged in the business of processing agricultural seeds. The company is involved in the breeding, multiplication, and distribution of mainly hybrid seed varieties for crops such as maize, wheat, soya beans, sugar beans, cowpeas, sorghum, groundnuts, and vegetables. It generates maximum revenue from the maize crop.

Seed Co (XZIM:SEED.ZW) Headlines

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