ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Pactiv Evergreen's annualizedNet Income for the quarter that ended in Dec. 2023 was $84 Mil.
Pactiv Evergreen's average Total Assets over the quarter that ended in Dec. 2023 was $6,421 Mil. Therefore, Pactiv Evergreen's annualized ROA % for the quarter that ended in Dec. 2023 was 1.31%.
The historical rank and industry rank for Pactiv Evergreen's ROA % or its related term are showing as below:
PTVE'
s ROA % Range Over the Past 10 Years
Min: -3.3 Med: 0.73 Max: 11.51
Current: -3.3
During the past 11 years, Pactiv Evergreen's highest ROA % was 11.51%. The lowest was -3.30%. And the median was 0.73%.
PTVE's ROA % is ranked worse than 89.15% of 387
companies
in the Packaging & Containers industry
Industry Median: 3.14
vs PTVE: -3.30
Pactiv Evergreen ROA % Historical Data
The historical data trend for Pactiv Evergreen'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.
Competitive Comparison of Pactiv Evergreen's ROA %
For the Packaging & Containers subindustry, Pactiv Evergreen'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.
Pactiv Evergreen's ROA % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Pactiv Evergreen's ROA % distribution charts can be found below:
* The bar in red indicates where Pactiv Evergreen's ROA % falls into.
Pactiv Evergreen ROA % Calculation
Pactiv Evergreen's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
* 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 four times the quarterly (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Pactiv Evergreen (NAS:PTVE) 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:
Note:
The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (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.
Pactiv Evergreen ROA % Related Terms
Thank you for viewing the detailed overview of Pactiv Evergreen's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Pactiv Evergreen (Pactiv Evergreen) Business Description
Pactiv Evergreen Inc is engaged in the business of manufacturing and distributing fresh foodservice and food merchandising products and fresh beverage cartons. It operates in three segments: Foodservice, Food Merchandising, and Beverage Merchandising. These segments manufacture a broad range of products such as food containers, drinkware, tableware, service ware, ready-to-eat food containers, clear rigid-display containers, trays for meat and poultry, molded fiber egg cartons, printed cartons, spouts & filling machines, and other products. The company's geographical segments are the United States, the Rest of North America, and Others, of which the vast majority of its revenue comes from the United States.
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