Archer-Daniels-Midland Company (ADM)

Net profit margin

Dec 31, 2024 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
Net income (ttm) US$ in thousands 1,800,000 1,798,000 2,601,000 3,042,000 3,483,000 3,937,000 4,147,000 4,456,000 4,340,000 4,103,000 3,598,000 3,074,000 2,709,000 2,614,000 2,313,000 2,070,000 1,772,000 1,589,000 1,771,000 1,537,000
Revenue (ttm) US$ in thousands 85,530,000 87,018,000 88,776,000 91,718,000 93,943,000 97,188,000 100,176,000 102,270,000 101,848,000 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
Net profit margin 2.10% 2.07% 2.93% 3.32% 3.71% 4.05% 4.14% 4.36% 4.26% 4.16% 3.81% 3.42% 3.18% 3.26% 3.09% 3.03% 2.75% 2.53% 2.75% 2.39%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,800,000K ÷ $85,530,000K
= 2.10%

Archer-Daniels-Midland Company's net profit margin has displayed some fluctuation over the analyzed periods. The trend generally shows an increasing pattern from March 31, 2020, with a net profit margin of 2.39%, reaching a peak of 4.36% on March 31, 2023. This growth in net profit margin indicates an improvement in the company's profitability during this period.

However, after March 31, 2023, the net profit margin begins to decline. It decreases steadily, reaching 2.10% by December 31, 2024. This decline in net profit margin suggests that the company may be experiencing challenges in maintaining or growing its profitability relative to its revenue during this latter period.

Overall, while there was a positive trend in net profit margin initially, the subsequent decrease in profitability towards the end of the analyzed period may raise concerns about the company's ability to sustain or enhance its profitability in the near future. Further analysis and investigation into the factors influencing these fluctuations in net profit margin could provide valuable insights into Archer-Daniels-Midland Company's financial performance and strategic direction.


Peer comparison

Dec 31, 2024

Company name
Symbol
Net profit margin
Archer-Daniels-Midland Company
ADM
2.10%
Bunge Limited
BG
2.14%
Darling Ingredients Inc
DAR
4.88%