Archer-Daniels-Midland Company (ADM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.00% | 7.45% | 7.02% | 6.92% | 6.41% |
| Operating profit margin | 3.47% | 3.63% | 3.03% | 2.10% | 1.60% |
| Pretax margin | 4.59% | 5.13% | 3.86% | 2.91% | 2.46% |
| Net profit margin | 3.71% | 4.27% | 3.18% | 2.75% | 2.13% |
Archer-Daniels-Midland Company's profitability ratios have shown a positive trend over the past five years. The gross profit margin has steadily increased from 6.41% in 2019 to 8.00% in 2023, indicating that the company has been able to improve its efficiency in generating revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has shown improvement over the years, reaching 3.47% in 2023 from 1.60% in 2019. This indicates that the company has been able to effectively manage its operating expenses to enhance profitability.
The pretax margin has exhibited a positive trend as well, increasing from 2.46% in 2019 to 4.59% in 2023. This suggests that the company has been successful in increasing pre-tax profits relative to its total revenue.
Furthermore, the net profit margin has also shown a consistent growth pattern, rising from 2.13% in 2019 to 3.71% in 2023. This indicates that the company has been effective in managing its overall expenses and taxes to improve its bottom line profitability.
Overall, the profitability ratios of Archer-Daniels-Midland Company have displayed positive growth trends, reflecting improved operational efficiency and effective cost management practices over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.96% | 6.16% | 4.60% | 2.72% | 2.35% |
| Return on assets (ROA) | 6.38% | 7.26% | 4.83% | 3.56% | 3.13% |
| Return on total capital | 16.70% | 18.48% | 11.77% | 7.93% | 9.26% |
| Return on equity (ROE) | 16.25% | 19.22% | 12.22% | 8.86% | 9.99% |
Archer-Daniels-Midland Company's profitability ratios show a generally positive trend over the past five years. The operating return on assets (Operating ROA) has fluctuated slightly but has remained at a respectable level, indicating the company's ability to generate profits from its assets used in operations.
The Return on assets (ROA) has shown an upward trend, indicating that the company has been able to effectively utilize its assets to generate profit over the years. The Return on total capital has also been increasing, demonstrating the company's efficiency in generating returns from the total capital employed.
The Return on equity (ROE) has shown a similar positive trend, indicating that the company has been efficient in generating returns for its shareholders over the years.
Overall, Archer-Daniels-Midland Company's profitability ratios suggest that the company has been successful in managing its assets, capital, and equity to generate profits for its stakeholders.