Archer-Daniels-Midland Company (ADM)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 4,839,000 | 3,390,000 | 3,428,000 | 3,740,000 | 3,642,000 | 3,792,000 | 3,431,000 | 2,847,000 | 2,497,000 | 3,408,000 | 3,206,000 | 2,959,000 | 2,454,000 | 2,271,000 | 2,316,000 | 2,096,000 | 2,123,000 | 2,007,000 | 2,083,000 | 2,446,000 |
| 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 |
| Operating profit margin | 5.15% | 3.50% | 3.43% | 3.67% | 3.59% | 3.84% | 3.64% | 3.16% | 2.93% | 4.25% | 4.28% | 4.33% | 3.81% | 3.62% | 3.60% | 3.26% | 3.28% | 3.12% | 3.29% | 3.81% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $4,839,000K ÷ $93,935,000K
= 5.15%
Archer-Daniels-Midland Company's operating profit margin has shown fluctuations over the displayed periods. The operating profit margin indicates how much of each dollar of revenue is left over after accounting for variable costs of production, such as wages and raw materials, and can be considered a measure of operational efficiency.
The operating profit margin ranged from 2.93% to 5.15% during the period. The highest operating profit margin was recorded at 5.15% on December 31, 2023, indicating that the company was able to control its operating expenses effectively and generate more profit relative to revenue during that period.
However, there were periods where the operating profit margin was lower, such as on March 31, 2020, where it was 3.26%. This suggests that the company may have faced challenges managing its operating expenses or experiencing lower revenue during that quarter.
Overall, it is important for Archer-Daniels-Midland Company to consistently monitor and optimize its operating profit margin to ensure profitability and operational efficiency in the long term.
Peer comparison
Dec 31, 2023