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Whole Earth Brands (Whole Earth Brands) ROE % : -15.48% (As of Mar. 2024)


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What is Whole Earth Brands ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Whole Earth Brands's annualized net income for the quarter that ended in Mar. 2024 was $-37.6 Mil. Whole Earth Brands's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $242.8 Mil. Therefore, Whole Earth Brands's annualized ROE % for the quarter that ended in Mar. 2024 was -15.48%.

The historical rank and industry rank for Whole Earth Brands's ROE % or its related term are showing as below:

FREE' s ROE % Range Over the Past 10 Years
Min: -19.97   Med: -7.23   Max: 6.32
Current: -11.08

During the past 6 years, Whole Earth Brands's highest ROE % was 6.32%. The lowest was -19.97%. And the median was -7.23%.

FREE's ROE % is ranked worse than
85.95% of 1822 companies
in the Consumer Packaged Goods industry
Industry Median: 6.315 vs FREE: -11.08

Whole Earth Brands ROE % Historical Data

The historical data trend for Whole Earth Brands'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.

Whole Earth Brands ROE % Chart

Whole Earth Brands Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial 6.32 - 0.03 -19.97 -14.48

Whole Earth Brands 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 -29.60 -8.55 -8.63 -11.78 -15.48

Competitive Comparison of Whole Earth Brands's ROE %

For the Packaged Foods subindustry, Whole Earth Brands'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.


Whole Earth Brands's ROE % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Whole Earth Brands's ROE % falls into.



Whole Earth Brands ROE % Calculation

Whole Earth Brands'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 )
=-38.096/( (274.551+251.69)/ 2 )
=-38.096/263.1205
=-14.48 %

Whole Earth Brands'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 )
=-37.584/( (251.69+233.987)/ 2 )
=-37.584/242.8385
=-15.48 %

* 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.


Whole Earth Brands  (NAS:FREE) 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
=-37.584/242.8385
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-37.584 / 518)*(518 / 820.666)*(820.666 / 242.8385)
=Net Margin %*Asset Turnover*Equity Multiplier
=-7.26 %*0.6312*3.3795
=ROA %*Equity Multiplier
=-4.58 %*3.3795
=-15.48 %

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
=-37.584/242.8385
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-37.584 / -30.016) * (-30.016 / 12.5) * (12.5 / 518) * (518 / 820.666) * (820.666 / 242.8385)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.2521 * -2.4013 * 2.41 % * 0.6312 * 3.3795
=-15.48 %

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.


Whole Earth Brands ROE % Related Terms

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


Whole Earth Brands (Whole Earth Brands) Business Description

Traded in Other Exchanges
Address
125 South Wacker Drive, Suite 3150, Chicago, IL, USA, 60606
Whole Earth Brands Inc is a food company enabling healthier lifestyles and providing access to high-quality, plant-based sweeteners, flavor enhancers and other foods through diverse portfolio of trusted brands and delicious products. The company operates in two segments namely, Branded CPG and Flavors & Ingredients. Its portfolio consists of three main product groups: sweeteners, adjacencies and ingredients.
Executives
Rajnish Ohri officer: Interim Co-CEO 125 S. WACKER DRIVE, SUITE 1250, CHICAGO IL 60606
Sababa Holdings Free Llc 10 percent owner C/O MARIPOSA CAPITAL, 500 SOUTH POINTE DRIVE STE 240, MIAMI BEACH FL 33139
Michael F Goss director BAIN CAPITAL PARTNERS LLC, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116
Bernardo Fiaux officer: Chief Financial Officer 125 S. WACKER DRIVE, SUITE 1250, CHICAGO IL 60606
Michael E. Franklin director 125 S. WACKER DRIVE, SUITE 1250, CHICAGO IL 60606
Trisha L Fox officer: Chief Human Resources Officer 125 S. WACKER DRIVE, SUITE 3150, CHICAGO IL 60606
Martin E Franklin 10 percent owner C/O MARIPOSA CAPITAL, LLC, 5200 BLUE LAGOON DRIVE, SUITE 855, MIAMI FL 33126
Duane A Portwood officer: Chief Financial Officer 836 BARN OWL ROAD, MARIETTA GA 30068
Jeffrey S. Robinson officer: President, Mafco Worldwide LLC 125 S. WACKER DRIVE, SUITE 3150, CHICAGO IL 60606
Brian Litman officer: Chief Accounting Officer 125 S. WACKER DRIVE, SUITE 3150, CHICAGO IL 60606
John M. Mcmillin director 1345 AVENUE OF THE AMERICAS 11TH FLOOR, NEW NY 10105
Irwin D Simon director C/O THE HAIN CELESTIAL GROUP INC., 1111 MARCUS AVENUE, LAKE SUCCESS NY 11042
Ira J Lamel director C/O THE HAIN CELESTIAL GROUP, INC., 1111 MARCUS AVENUE, LAKE SUCCESS NY 11042
Anuraag Agarwal director 1345 AVENUE OF THE AMERICAS 11TH FL, NEW YORK NY 10105
Denise M Faltischek director C/O THE HAIN CELESTIAL GROUP, INC., 1111 MARCUS AVENUE, LAKE SUCCESS NY 11042