Archer-Daniels-Midland Company (ADM)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,257,000 | 3,685,000 | 2,581,000 | 1,353,000 | 1,032,000 |
| Revenue | US$ in thousands | 93,935,000 | 101,556,000 | 85,249,000 | 64,355,000 | 64,656,000 |
| Operating profit margin | 3.47% | 3.63% | 3.03% | 2.10% | 1.60% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $3,257,000K ÷ $93,935,000K
= 3.47%
Archer-Daniels-Midland Company's operating profit margin has shown a positive trend over the past five years. The company's operating profit margin increased from 1.60% in 2019 to 3.47% in 2023, indicating an improvement in the company's ability to generate profits from its core operations. This steady increase suggests effective cost management and operational efficiency within the company.
The operating profit margin for 2023 is at its highest level over the five-year period, reaching 3.47%. This indicates that for every dollar in revenue generated, the company is able to retain 3.47 cents as operating profit. The consistent improvement in operating profit margin reflects positively on the company's profitability and overall financial health.
Overall, the upward trend in Archer-Daniels-Midland Company's operating profit margin demonstrates its ability to efficiently control costs, enhance operational performance, and drive profitability over the years.
Peer comparison
Dec 31, 2023