Archer-Daniels-Midland Company (ADM)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,879,000 | 3,832,000 | 4,311,000 | 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 |
| 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 |
| Operating profit margin | 3.31% | 4.32% | 4.70% | 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% |
September 30, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,879,000K ÷ $87,010,000K
= 3.31%
Archer-Daniels-Midland Company's operating profit margin has shown a fluctuating trend over the past several quarters. The operating profit margin measures the company's ability to generate profit from its core operations.
In the most recent quarter ended September 30, 2024, the operating profit margin was 3.31%, which represents a slight decrease compared to the previous quarter. The downward trend in the operating profit margin since the peak in December 2023 suggests potential challenges in maintaining profitability in the current operating environment.
It is important to note that while the operating profit margin has fluctuated, it has generally remained within the range of 3% to 5% over the analyzed periods. This indicates that Archer-Daniels-Midland Company has been able to control its operating expenses relative to its revenue, although there may be room for improvement in enhancing operational efficiency to boost profitability.
In order to improve the operating profit margin, management may need to focus on cost-containment measures, revenue growth strategies, and operational efficiencies. Continuous monitoring and analysis of the operating profit margin will be crucial for assessing the company's financial performance and competitiveness in the industry.
Peer comparison
Sep 30, 2024