Archer-Daniels-Midland Company (ADM)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 7,513,000 | 7,570,000 | 5,987,000 | 4,453,000 | 4,147,000 |
| Revenue | US$ in thousands | 93,935,000 | 101,556,000 | 85,249,000 | 64,355,000 | 64,656,000 |
| Gross profit margin | 8.00% | 7.45% | 7.02% | 6.92% | 6.41% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $7,513,000K ÷ $93,935,000K
= 8.00%
Archer-Daniels-Midland Company's gross profit margin has exhibited a positive trend over the past five years. The company's gross profit margin increased from 6.41% in 2019 to 8.00% in 2023. This indicates that the company was able to improve its efficiency in generating profits from its core operations, resulting in a higher percentage of revenue retained after accounting for direct costs of goods sold.
The consistent improvement in the gross profit margin suggests that Archer-Daniels-Midland Company may have enhanced its pricing strategies, streamlined production processes, or achieved cost savings in its supply chain management. This trend reflects positively on the company's operational efficiency and profitability potential.
Analyzing the gross profit margin over multiple years provides insights into the company's ability to manage production costs and generate profits from its core business activities, which are essential factors in evaluating its overall financial performance and competitive position in the industry.
Peer comparison
Dec 31, 2023