Archer-Daniels-Midland Company (ADM)
Pretax margin
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 2,256,000 | 2,323,000 | 3,246,000 | 3,782,000 | 4,294,000 | 4,773,000 | 4,972,000 | 5,359,000 | 5,233,000 | 5,031,000 | 4,454,000 | 3,760,000 | 3,313,000 | 3,058,000 | 2,605,000 | 2,332,000 | 1,883,000 | 1,623,000 | 1,926,000 | 1,648,000 |
| Revenue (ttm) | US$ in thousands | 85,530,000 | 87,018,000 | 88,776,000 | 91,718,000 | 93,943,000 | 97,188,000 | 100,176,000 | 102,270,000 | 101,848,000 | 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 |
| Pretax margin | 2.64% | 2.67% | 3.66% | 4.12% | 4.57% | 4.91% | 4.96% | 5.24% | 5.14% | 5.10% | 4.72% | 4.18% | 3.89% | 3.82% | 3.48% | 3.42% | 2.93% | 2.59% | 3.00% | 2.56% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,256,000K ÷ $85,530,000K
= 2.64%
Archer-Daniels-Midland Company's pretax margin has exhibited fluctuations over the past few years. The pretax margin, a measure of a company's profitability before taxes relative to its total revenue, started at 2.56% in March 2020 and experienced fluctuations over subsequent quarters. It reached a peak of 5.14% in December 2022 but then began to decline.
By March 2024, the pretax margin decreased to 4.12%, reflecting a downward trend. Despite the decline, the company's pretax margin remained above the levels seen in the earlier years of the analysis period. It is essential for the company to monitor this trend closely and identify factors contributing to the fluctuations in the pretax margin to make informed strategic decisions to maintain or improve profitability.
Peer comparison
Dec 31, 2024