Archer-Daniels-Midland Company (ADM)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 4,311,000 | 4,762,000 | 4,958,000 | 5,342,000 | 5,208,000 | 4,996,000 | 4,418,000 | 3,728,000 | 3,287,000 | 3,041,000 | 2,594,000 | 2,318,000 | 1,873,000 | 1,624,000 | 1,927,000 | 1,649,000 | 1,588,000 | 1,397,000 | 1,527,000 | 1,908,000 |
| Revenue (ttm) | US$ in thousands | 93,935,000 | 96,896,000 | 99,884,000 | 101,978,000 | 101,556,000 | 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 | 64,656,000 | 64,274,000 | 63,348,000 | 64,119,000 |
| Pretax margin | 4.59% | 4.91% | 4.96% | 5.24% | 5.13% | 5.06% | 4.68% | 4.14% | 3.86% | 3.79% | 3.46% | 3.39% | 2.91% | 2.59% | 3.00% | 2.56% | 2.46% | 2.17% | 2.41% | 2.98% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $4,311,000K ÷ $93,935,000K
= 4.59%
The pretax margin of Archer-Daniels-Midland Company has shown some fluctuations over the past few quarters. From Dec 31, 2019, to Dec 31, 2023, the pretax margin has generally improved, albeit with some variability. The trend indicates a gradual increase in profitability before taxes.
The pretax margin was relatively low at 2.17% in Mar 31, 2019, and reached a peak of 5.24% by Mar 31, 2023. This suggests that the company has been able to enhance its profitability as a percentage of revenue before accounting for taxes and other expenses over this period.
While there was a slight decline in the pretax margin in the most recent quarter (Dec 31, 2023), it is essential to monitor future financial results to assess if this is a temporary fluctuation or a potential trend. Overall, the improving pretax margin signifies the company's efficiency in managing costs and generating profits before tax obligations. Further investigation could shed light on the underlying factors driving these changes in profitability.
Peer comparison
Dec 31, 2023