Archer-Daniels-Midland Company (ADM)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,255,000 | 4,294,000 | 5,233,000 | 3,313,000 | 1,883,000 |
| Revenue | US$ in thousands | 85,530,000 | 93,935,000 | 101,848,000 | 85,249,000 | 64,355,000 |
| Pretax margin | 2.64% | 4.57% | 5.14% | 3.89% | 2.93% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $2,255,000K ÷ $85,530,000K
= 2.64%
Archer-Daniels-Midland Company's pretax margin, a key profitability ratio indicating the company's ability to generate earnings before tax expenses relative to its total revenue, has shown fluctuations over the past five years.
In December 31, 2020, the pretax margin stood at 2.93%, reflecting a modest profitability level. However, there was a notable improvement by December 31, 2021, with the margin increasing to 3.89%, signaling better profitability.
The year 2022 saw a significant boost in pretax margin to 5.14%, indicating a strong performance in generating earnings before tax. Despite this peak, there was a slight decline in profitability by December 31, 2023, as the pretax margin dropped to 4.57%.
Furthermore, in the most recent year ending December 31, 2024, the pretax margin decreased to 2.64%, implying a decline in profitability compared to the previous year.
Overall, while there have been fluctuations in Archer-Daniels-Midland Company's pretax margin over the years, the company has demonstrated varying levels of profitability, with sharp increases and decreases observed in different years. This indicates the importance of monitoring and analyzing this ratio to assess the company's financial performance and operational efficiency accurately.
Peer comparison
Dec 31, 2024