Archer-Daniels-Midland Company (ADM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 6.76% | 6.30% | 6.68% | 6.99% | 7.27% | 7.75% | 7.52% | 7.58% | 7.43% | 7.56% | 7.39% | 7.04% | 7.02% | 7.10% | 7.21% | 7.40% | 6.92% | 6.81% | 6.70% | 6.48% |
| Operating profit margin | 2.43% | 2.09% | 2.65% | 3.52% | 3.96% | 4.83% | 5.01% | 4.83% | 4.95% | 5.07% | 4.49% | 4.03% | 3.57% | 3.45% | 3.81% | 3.76% | 3.24% | 3.26% | 2.90% | 3.06% |
| 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% |
| Net profit margin | 2.10% | 2.07% | 2.93% | 3.32% | 3.71% | 4.05% | 4.14% | 4.36% | 4.26% | 4.16% | 3.81% | 3.42% | 3.18% | 3.26% | 3.09% | 3.03% | 2.75% | 2.53% | 2.75% | 2.39% |
Archer-Daniels-Midland Company's profitability ratios have shown some fluctuations over the reported periods.
1. Gross Profit Margin: The company's gross profit margin has generally been increasing from 6.48% in March 2020 to a peak of 7.75% in September 2023, before slightly declining to 7.27% by December 2023. However, by the end of December 2024, it recovered to 6.76%.
2. Operating Profit Margin: The operating profit margin experienced a similar fluctuation trend. It started at 3.06% in March 2020, increased to 5.07% in September 2022, but then dropped to 2.43% by December 2024.
3. Pretax Margin: The pretax margin has generally shown an increasing trend over the periods, starting at 2.56% in March 2020 and peaking at 5.14% in December 2022. However, it experienced a decline to 2.64% by December 2024.
4. Net Profit Margin: The net profit margin has shown a steady increase from 2.39% in March 2020 to 4.36% in March 2023, before declining to 2.10% by December 2024.
Overall, the company has displayed fluctuations in its profitability margins, with periods of growth followed by decline. It is essential for management to closely monitor these ratios to ensure sustainable profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.78% | 3.48% | 4.46% | 5.89% | 6.81% | 8.52% | 9.05% | 8.40% | 8.44% | 8.59% | 6.85% | 5.59% | 5.42% | 5.29% | 5.60% | 4.99% | 4.20% | 4.56% | 4.20% | 4.07% |
| Return on assets (ROA) | 5.01% | 3.44% | 4.94% | 5.55% | 6.38% | 7.15% | 7.47% | 7.58% | 7.26% | 7.04% | 5.82% | 4.74% | 4.83% | 5.00% | 4.54% | 4.02% | 3.56% | 3.55% | 3.99% | 3.18% |
| Return on total capital | 12.97% | 13.33% | 16.46% | 18.61% | 19.95% | 20.85% | 21.09% | 20.84% | 19.40% | 18.57% | 16.65% | 14.40% | 14.01% | 12.17% | 11.49% | 11.05% | 8.99% | 8.39% | 8.86% | 8.53% |
| Return on equity (ROE) | 8.12% | 8.18% | 11.74% | 13.10% | 14.43% | 15.61% | 16.63% | 17.92% | 17.87% | 17.10% | 14.75% | 12.96% | 12.05% | 11.90% | 10.72% | 9.93% | 8.86% | 8.22% | 9.18% | 8.11% |
Archer-Daniels-Midland Company's profitability ratios reveal a generally positive trend over the past few years, showing improvements in profitability metrics.
1. Operating Return on Assets (Operating ROA) has steadily increased from 4.07% as of March 31, 2020, to 6.81% by December 31, 2023, with a slight decline to 5.78% as of December 31, 2024. This ratio indicates the efficiency of the company's operations in generating profits from its assets.
2. Return on Assets (ROA) has exhibited a similar upward trajectory, rising from 3.18% in March 31, 2020, to 5.01% by December 31, 2021. However, there was a slight decrease to 5.01% by December 31, 2024. ROA assesses the company's overall ability to generate profits from its total assets.
3. Return on Total Capital has shown a consistent growth pattern, increasing from 8.53% in March 31, 2020, to 12.97% by December 31, 2024. This ratio evaluates the efficiency of the company in generating returns from its capital investments.
4. Return on Equity (ROE) has also demonstrated positive trends, escalating from 8.11% as of March 31, 2020, to 14.43% by December 31, 2023. However, there was a decline to 8.12% by December 31, 2024. ROE highlights the company's ability to generate returns for its shareholders from the equity invested.
Overall, Archer-Daniels-Midland Company's profitability ratios indicate improvements in operational efficiency and profitability over the years, with some slight fluctuations observed in the most recent periods.