Archer-Daniels-Midland Company (ADM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,072,000 | 4,057,000 | 5,695,000 | 3,778,000 | 2,711,000 |
| Total assets | US$ in thousands | 53,271,000 | 54,631,000 | 59,774,000 | 56,136,000 | 49,719,000 |
| Operating ROA | 3.89% | 7.43% | 9.53% | 6.73% | 5.45% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,072,000K ÷ $53,271,000K
= 3.89%
Archer-Daniels-Midland Company's operating return on assets (ROA) has shown variability over the period from December 31, 2020, to December 31, 2024. The trend indicates a gradual increase from 5.45% in 2020 to a peak of 9.53% in 2022, reflecting improved efficiency in generating operating income relative to its total assets. However, there was a decrease in operating ROA to 3.89% by the end of 2024.
The company's operating ROA performance should be assessed further to understand the underlying factors driving these fluctuations. It is crucial to examine the company's operating income and asset turnover to determine the drivers of the changes in operating ROA. Additionally, investigating any changes in the company's asset base or operational efficiency can provide insights into the varying profitability levels observed.
Peer comparison
Dec 31, 2024