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International Flavors & Fragrances (International Flavors & Fragrances) ROE %

: -66.02% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. International Flavors & Fragrances's annualized net income for the quarter that ended in Dec. 2023 was $-10,428 Mil. International Flavors & Fragrances's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $15,795 Mil. Therefore, International Flavors & Fragrances's annualized ROE % for the quarter that ended in Dec. 2023 was -66.02%.

The historical rank and industry rank for International Flavors & Fragrances's ROE % or its related term are showing as below:

IFF' s ROE % Range Over the Past 10 Years
Min: -15.9   Med: 8.04   Max: 27.81
Current: -15.15

During the past 13 years, International Flavors & Fragrances's highest ROE % was 27.81%. The lowest was -15.90%. And the median was 8.04%.

IFF's ROE % is ranked worse than
90.45% of 1539 companies
in the Chemicals industry
Industry Median: 5.59 vs IFF: -15.15

International Flavors & Fragrances ROE % Historical Data

The historical data trend for International Flavors & Fragrances'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.

International Flavors & Fragrances Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.41 5.83 1.96 -9.64 -15.90

International Flavors & Fragrances Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % 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 Premium Member Only Premium Member Only Premium Member Only -0.58 -0.20 0.61 0.58 -66.02

Competitive Comparison

For the Specialty Chemicals subindustry, International Flavors & Fragrances'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.


International Flavors & Fragrances ROE % Distribution

For the Chemicals industry and Basic Materials sector, International Flavors & Fragrances's ROE % distribution charts can be found below:

* The bar in red indicates where International Flavors & Fragrances's ROE % falls into.



International Flavors & Fragrances ROE % Calculation

International Flavors & Fragrances'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 )
=-2565/( (17655+14611)/ 2 )
=-2565/16133
=-15.90 %

International Flavors & Fragrances's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-10428/( (16978+14611)/ 2 )
=-10428/15794.5
=-66.02 %

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


International Flavors & Fragrances  (NYSE:IFF) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-10428/15794.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-10428 / 10812)*(10812 / 32186.5)*(32186.5 / 15794.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=-96.45 %*0.3359*2.0378
=ROA %*Equity Multiplier
=-32.4 %*2.0378
=-66.02 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-10428/15794.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-10428 / -10564) * (-10564 / 368) * (368 / 10812) * (10812 / 32186.5) * (32186.5 / 15794.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9871 * -28.7065 * 3.4 % * 0.3359 * 2.0378
=-66.02 %

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. 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.


International Flavors & Fragrances ROE % Related Terms

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


International Flavors & Fragrances (International Flavors & Fragrances) Business Description

Address
521 West 57th Street, New York, NY, USA, 10019-2960
International Flavors & Fragrances is the largest specialty ingredients producer globally. The company sells ingredients for the food, beverage, health, household goods, personal care, and pharmaceutical industries. The company makes proprietary formulations, partnering with customers to deliver custom solutions. The nourish segment, which generates roughly half of revenue, is a leading flavor producer and also sell texturants, plant-based proteins, and other ingredients. The health and biosciences business, which generates around one fourth of revenue, is a global leader in probiotics and enzymes. IFF is also one of the leading fragrance producers in the world. The firm also sells pharmaceutical ingredients such as excipients and time-release polymers.
Executives
Yuvraj Arora officer: President, Nourish INTERNATIONAL FLOWERS & FRAGRANCES, 521 WEST 57TH STREET, NEW YORK NY 10019
Fauchon De Villeplee Christophe officer: President, Scent INTERNATIONAL FLAVORS & FRANGRANCES INC., 521 WEST 57TH STREET, NEW YORK NY 10019
Kevin O'byrne director INTERNATIONAL FLAVORS & FRAGRANCES, 521 WEST 57TH STREET, NEW YORK NY 10019
Dawn C Willoughby director 1221 BROADWAY, OAKLAND CA 94612
Gaoxiang Hu director 16690 COLLINS AVE., SUITE PH-1, SUNNY ISLES BEACH FL 33160
Mark J Costa director 200 SOUTH WILCOX DRIVE, P.O. BOX 431, KINGSPORT TN 37660
Ralf Finzel officer: EVP, Global Operations Officer INTERNATIONAL FLAVORS & FRAGRANCES, 521 WEST 57TH STREET, NEW YORK NY 10019
Beril Yildiz officer: CAO, SVP & Controller ONE NEW YORK PLAZA, NEW YORK NY 10004
Deborah Borg officer: EVP, Chief HR and D&I Officer BUNGE LIMITED, 1391 TIMBERLAKE MANOR PARKWAY, CHESTERFIELD MO 63017
Francisco Fortanet officer: SVP, Operations 521 WEST 57TH STREET, NEW YORK NY 10019
Frank Clyburn officer: Chief Executive Officer 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Barry A. Bruno director 500 CHARLES EWING BLVD, EWING NJ 08628
Glenn R Richter officer: CFO 3333 BEVERLY ROAD, B6 277A, HOFFMAN ESTATES IL 60179
Kathryn Jean Boor director 3736 S. MAIN STREET, MARION NY 14505
Edward D Breen director C/O TYCO INTERNATIONAL (US) INC, 9 WEST 57TH ST 43RD FL., NEW YORK NY 10019