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Vital Farms (Vital Farms) ROE % : 37.49% (As of Mar. 2024)


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What is Vital Farms ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Vital Farms's annualized net income for the quarter that ended in Mar. 2024 was $76.1 Mil. Vital Farms's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $203.0 Mil. Therefore, Vital Farms's annualized ROE % for the quarter that ended in Mar. 2024 was 37.49%.

The historical rank and industry rank for Vital Farms's ROE % or its related term are showing as below:

VITL' s ROE % Range Over the Past 10 Years
Min: 0.81   Med: 13.13   Max: 113.33
Current: 20.08

During the past 7 years, Vital Farms's highest ROE % was 113.33%. The lowest was 0.81%. And the median was 13.13%.

VITL's ROE % is ranked better than
86.21% of 1820 companies
in the Consumer Packaged Goods industry
Industry Median: 6.315 vs VITL: 20.08

Vital Farms ROE % Historical Data

The historical data trend for Vital Farms'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.

Vital Farms ROE % Chart

Vital Farms Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial 34.88 11.69 1.66 0.81 14.57

Vital Farms 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 17.55 15.56 10.08 15.36 37.49

Competitive Comparison of Vital Farms's ROE %

For the Farm Products subindustry, Vital Farms'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.


Vital Farms's ROE % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Vital Farms's ROE % falls into.



Vital Farms ROE % Calculation

Vital Farms'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 )
=25.566/( (158.332+192.677)/ 2 )
=25.566/175.5045
=14.57 %

Vital Farms'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 )
=76.092/( (192.677+213.304)/ 2 )
=76.092/202.9905
=37.49 %

* 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.


Vital Farms  (NAS:VITL) 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
=76.092/202.9905
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(76.092 / 591.716)*(591.716 / 287.668)*(287.668 / 202.9905)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.86 %*2.0569*1.4172
=ROA %*Equity Multiplier
=26.45 %*1.4172
=37.49 %

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
=76.092/202.9905
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (76.092 / 98.9) * (98.9 / 96.676) * (96.676 / 591.716) * (591.716 / 287.668) * (287.668 / 202.9905)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7694 * 1.023 * 16.34 % * 2.0569 * 1.4172
=37.49 %

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.


Vital Farms ROE % Related Terms

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


Vital Farms (Vital Farms) Business Description

Traded in Other Exchanges
Address
3601 South Congress Avenue, Suite C100, Austin, TX, USA, 78704
Vital Farms Inc is an ethical food company. The company retails pasture-raised eggs and butter. Its products include Pasture-Raised Eggs and Pasture-Raised Butter & Ghee. The company's purpose is rooted in a commitment to Conscious Capitalism, which prioritizes the long-term benefits of each of its stakeholders (farmers and suppliers, customers and consumers, communities and the environment, employees, and stockholders).
Executives
Matthew Ohayer director, 10 percent owner, officer: Executive Chairman C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Russell Diez-canseco director, officer: President and CEO C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Jason Dale officer: COO and CFO C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Thilo Wrede officer: Chief Financial Officer C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Kathryn Mckeon officer: Chief Marketing Officer C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Stephanie Coon officer: SVP of People and Strategy C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Brent Drever director C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Denny Marie Post director C/O BURGER KING HOLDINGS, INC., 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Joanne Bal officer: GC, Sec. and Head of ESG C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Scott Marcus officer: Chief Marketing Officer C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TN 78704
Jeffery S Dawson officer: Chief Accounting Officer 2711 NORTH HASKELL AVENUE, SUITE 3400, DALLAS TX 75204
Kofi Owusu Amoo-gottfried director C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Bo Erick Meissner officer: Chief Financial Officer C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Karl Khoury director C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Glenda J Flanagan director 550 BOWIE STREET, AUSTIN TX 78703