GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Arab Potash Co Ltd (AMM:APOT) » Definitions » ROE %

Arab Potash Co (AMM:APOT) ROE % : 12.03% (As of Mar. 2024)


View and export this data going back to 1978. Start your Free Trial

What is Arab Potash Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Arab Potash Co's annualized net income for the quarter that ended in Mar. 2024 was JOD209.4 Mil. Arab Potash Co's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was JOD1,740.5 Mil. Therefore, Arab Potash Co's annualized ROE % for the quarter that ended in Mar. 2024 was 12.03%.

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

AMM:APOT' s ROE % Range Over the Past 10 Years
Min: 7.54   Med: 15.24   Max: 45.5
Current: 13.95

During the past 13 years, Arab Potash Co's highest ROE % was 45.50%. The lowest was 7.54%. And the median was 15.24%.

AMM:APOT's ROE % is ranked better than
76.33% of 245 companies
in the Agriculture industry
Industry Median: 5.23 vs AMM:APOT: 13.95

Arab Potash Co ROE % Historical Data

The historical data trend for Arab Potash 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.

Arab Potash Co ROE % Chart

Arab Potash Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.47 13.91 21.67 45.50 17.79

Arab Potash Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 29.23 17.02 14.42 12.60 12.03

Competitive Comparison of Arab Potash Co's ROE %

For the Agricultural Inputs subindustry, Arab Potash 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.


Arab Potash Co's ROE % Distribution in the Agriculture Industry

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

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



Arab Potash Co ROE % Calculation

Arab Potash Co's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=292.644/( (1575.328+1714.352)/ 2 )
=292.644/1644.84
=17.79 %

Arab Potash Co's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=209.408/( (1714.352+1766.704)/ 2 )
=209.408/1740.528
=12.03 %

* 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 (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Arab Potash Co  (AMM:APOT) 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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=209.408/1740.528
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(209.408 / 648.432)*(648.432 / 2004.2935)*(2004.2935 / 1740.528)
=Net Margin %*Asset Turnover*Equity Multiplier
=32.29 %*0.3235*1.1515
=ROA %*Equity Multiplier
=10.45 %*1.1515
=12.03 %

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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=209.408/1740.528
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (209.408 / 285.452) * (285.452 / 212.964) * (212.964 / 648.432) * (648.432 / 2004.2935) * (2004.2935 / 1740.528)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7336 * 1.3404 * 32.84 % * 0.3235 * 1.1515
=12.03 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


Arab Potash Co ROE % Related Terms

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


Arab Potash Co (AMM:APOT) Business Description

Traded in Other Exchanges
N/A
Address
Al Shmeisani - Al Jaheth Street, P.0. Box 1470, Amman, JOR, 11118
Arab Potash Co Ltd produces potash, potassium nitrate, and other derivatives. Its segments consist of Producing potash and Salt through Arab Potash Company, producing potassium nitrate and dicalcium phosphate through Arab Fertilizers and Chemical Industries, and Producing mixed salts and mud through Numeira Mixed Salts and Mud Company. Its sales are spread across China and India, the Far and Middle East, Africa, Europe, Canada, America, and Australia. The majority of the revenue comes from the china and India.

Arab Potash Co (AMM:APOT) Headlines

No Headlines