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DSM Firmenich AG (XAMS:DSFIR) ROA % : -1.29% (As of Dec. 2023)


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What is DSM Firmenich AG ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. DSM Firmenich AG's annualized Net Income for the quarter that ended in Dec. 2023 was €-448 Mil. DSM Firmenich AG's average Total Assets over the quarter that ended in Dec. 2023 was €34,693 Mil. Therefore, DSM Firmenich AG's annualized ROA % for the quarter that ended in Dec. 2023 was -1.29%.

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

XAMS:DSFIR' s ROA % Range Over the Past 10 Years
Min: 7.39   Med: 9.02   Max: 9.77
Current: 7.39

During the past 3 years, DSM Firmenich AG's highest ROA % was 9.77%. The lowest was 7.39%. And the median was 9.02%.

XAMS:DSFIR's ROA % is ranked better than
74.96% of 1901 companies
in the Consumer Packaged Goods industry
Industry Median: 2.96 vs XAMS:DSFIR: 7.39

DSM Firmenich AG ROA % Historical Data

The historical data trend for DSM Firmenich AG'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.

DSM Firmenich AG ROA % Chart

DSM Firmenich AG Annual Data
Trend Dec21 Dec22 Dec23
ROA %
- 9.77 8.27

DSM Firmenich AG Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23
ROA % - 2.45 9.25 17.98 -1.29

Competitive Comparison of DSM Firmenich AG's ROA %

For the Household & Personal Products subindustry, DSM Firmenich AG'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.


DSM Firmenich AG's ROA % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, DSM Firmenich AG's ROA % distribution charts can be found below:

* The bar in red indicates where DSM Firmenich AG's ROA % falls into.



DSM Firmenich AG ROA % Calculation

DSM Firmenich AG's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=2137/( (17403+34270)/ 2 )
=2137/25836.5
=8.27 %

DSM Firmenich AG's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Jun. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=-448/( (35115+34270)/ 2 )
=-448/34692.5
=-1.29 %

* 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 two times the semi-annual (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


DSM Firmenich AG  (XAMS:DSFIR) 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: Dec. 2023 )
=Net Income/Total Assets
=-448/34692.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-448 / 12314)*(12314 / 34692.5)
=Net Margin %*Asset Turnover
=-3.64 %*0.3549
=-1.29 %

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


DSM Firmenich AG ROA % Related Terms

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DSM Firmenich AG (XAMS:DSFIR) Business Description

Comparable Companies
Traded in Other Exchanges
Address
Wurmisweg 576, Kaiseraugst, CHE, 4303
DSM-Firmenich is a global science-based company formed in 2023 through the merger of DSM, a Dutch nutrition, health, and sustainable living player, and Switzerland-based Firmenich, the third-largest player in the flavor and fragrance market. The company serves a wide range of end-consumer markets providing nutrition solutions ranging from animal feed to medical and early-life nutrition, fragrances for personal-, home-, and laundry-care brands, prestige perfumes, and other ingredients for food and beverage, home, and personal care. DSM-Firmenich has nearly 30,000 employees, with more than 2,000 scientists and engineers spread across 15 research and development facilities.

DSM Firmenich AG (XAMS:DSFIR) Headlines

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