Archer-Daniels-Midland Company (ADM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 54,631,000 | 59,774,000 | 56,136,000 | 49,719,000 | 43,997,000 |
| Operating ROA | 5.96% | 6.16% | 4.60% | 2.72% | 2.35% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,257,000K ÷ $54,631,000K
= 5.96%
Archer-Daniels-Midland Company's operating return on assets (operating ROA) has exhibited a generally upward trend over the past five years. The company's operating ROA stood at 5.96% at the end of 2023, compared to 6.16% in 2022, indicating a slight decrease in performance. Despite this decline, the operating ROA remains at a relatively healthy level, showing a significant improvement from 4.60% in 2021 and substantial growth from 2.72% in 2020 and 2.35% in 2019.
This improvement in operating ROA suggests that Archer-Daniels-Midland has been more efficient in generating operating profits relative to its total assets in recent years. The consistent increase in operating ROA indicates the company's effective management of its assets to generate operating income. Overall, the trend in operating ROA for Archer-Daniels-Midland signals positive operational performance and indicates a potential enhancement in profitability and efficiency over the past five years.
Peer comparison
Dec 31, 2023