Archer-Daniels-Midland Company (ADM)
Gross profit margin
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 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 | 4,031,000 | 4,011,000 | 4,220,000 |
| Revenue (ttm) | US$ in thousands | 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 | 64,274,000 | 63,348,000 | 64,119,000 |
| Gross profit margin | 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% | 6.27% | 6.33% | 6.58% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $7,513,000K ÷ $93,935,000K
= 8.00%
Archer-Daniels-Midland Company's gross profit margin has shown fluctuation over the past five years. The company's gross profit margin has ranged from a low of 6.27% in March 2019 to a high of 8.00% in December 2023. The recent trend indicates a gradual improvement in the gross profit margin, with a slight dip in September 2023 followed by an increase in the subsequent quarter.
The average gross profit margin over this period is around 7.05%, which indicates that the company, on average, retains approximately 7.05 cents from every dollar of sales after accounting for the cost of goods sold. The fluctuations in the gross profit margin may be influenced by factors such as changes in commodity prices, operational efficiencies, and competitive pressures in the industry.
Overall, it is essential for Archer-Daniels-Midland Company to closely monitor its gross profit margin and implement strategies to enhance profitability, optimize costs, and improve operational performance to sustain or increase its margins over time.
Peer comparison
Dec 31, 2023