Archer-Daniels-Midland Company (ADM)
Gross profit margin
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 6,160,000 | 6,605,000 | 7,092,000 | 7,513,000 | 7,535,000 | 7,536,000 | 7,753,000 | 7,570,000 | 7,458,000 | 6,973,000 | 6,336,000 | 5,987,000 | 5,689,000 | 5,405,000 | 5,050,000 | 4,453,000 | 4,270,000 | 4,306,000 | 4,170,000 | 4,147,000 |
| Revenue (ttm) | US$ in thousands | 87,010,000 | 88,768,000 | 91,710,000 | 93,935,000 | 96,896,000 | 99,884,000 | 101,978,000 | 101,556,000 | 98,707,000 | 94,364,000 | 90,006,000 | 85,249,000 | 80,137,000 | 74,923,000 | 68,278,000 | 64,355,000 | 62,706,000 | 64,306,000 | 64,322,000 | 64,656,000 |
| Gross profit margin | 7.08% | 7.44% | 7.73% | 8.00% | 7.78% | 7.54% | 7.60% | 7.45% | 7.56% | 7.39% | 7.04% | 7.02% | 7.10% | 7.21% | 7.40% | 6.92% | 6.81% | 6.70% | 6.48% | 6.41% |
September 30, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $6,160,000K ÷ $87,010,000K
= 7.08%
Archer-Daniels-Midland Company's gross profit margin has shown some variability over the past few years. The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold and is available to cover operating expenses and generate profit.
From December 2019 to September 2022, the gross profit margin ranged between 6.41% and 7.56%. It started at the lower end of the range, gradually increased, and then showed some fluctuations before trending downwards again. The company reached a peak gross profit margin of 8.00% in December 2023, but it has since declined to 7.08% as of September 2024.
The downward trend in gross profit margin from December 2023 to September 2024 indicates potential challenges in managing the cost of goods sold relative to revenue. This could be due to various factors such as increased production costs, pricing pressures, or changes in sales mix. It may be important for Archer-Daniels-Midland Company to closely monitor and control its cost structure to improve profitability in the future.
Peer comparison
Sep 30, 2024