Archer-Daniels-Midland Company (ADM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 54,631,000 | 55,093,000 | 55,499,000 | 58,802,000 | 59,774,000 | 58,304,000 | 61,828,000 | 64,866,000 | 56,136,000 | 52,298,000 | 50,958,000 | 51,478,000 | 49,719,000 | 44,795,000 | 44,341,000 | 48,395,000 | 43,997,000 | 41,804,000 | 42,616,000 | 43,151,000 |
| Operating ROA | 8.86% | 6.15% | 6.18% | 6.36% | 6.09% | 6.50% | 5.55% | 4.39% | 4.45% | 6.52% | 6.29% | 5.75% | 4.94% | 5.07% | 5.22% | 4.33% | 4.83% | 4.80% | 4.89% | 5.67% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $4,839,000K ÷ $54,631,000K
= 8.86%
Archer-Daniels-Midland Company's operating return on assets (operating ROA) has shown fluctuations over the past five quarters. The operating ROA ranged from a low of 4.33% in the first quarter of 2020 to a high of 8.86% in the fourth quarter of 2023. The company's operating ROA was relatively stable in 2021 and part of 2022, hovering between 5.75% and 6.52%.
However, starting from the third quarter of 2022, there was an increase in the operating ROA, reaching above 6% consistently. This trend continued, with the operating ROA peaking at 8.86% in the fourth quarter of 2023.
The upward trend in operating ROA indicates that Archer-Daniels-Midland Company has been improving its efficiency in generating operating income relative to its total assets. This could be a positive sign of effective asset utilization and operational performance. It is crucial for the company to sustain or further increase this metric to enhance its overall profitability and competitiveness in the industry.
Peer comparison
Dec 31, 2023