Archer-Daniels-Midland Company (ADM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 8.00% | 7.78% | 7.54% | 7.60% | 7.45% | 7.56% | 7.39% | 7.04% | 7.02% | 7.10% | 7.21% | 7.40% | 6.92% | 6.81% | 6.70% | 6.48% | 6.41% | 6.27% | 6.33% | 6.58% |
| Operating profit margin | 5.15% | 3.50% | 3.43% | 3.67% | 3.59% | 3.84% | 3.64% | 3.16% | 2.93% | 4.25% | 4.28% | 4.33% | 3.81% | 3.62% | 3.60% | 3.26% | 3.28% | 3.12% | 3.29% | 3.81% |
| 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% |
| Net profit margin | 3.71% | 4.06% | 4.15% | 4.37% | 4.27% | 4.16% | 3.81% | 3.42% | 3.18% | 3.26% | 3.09% | 3.03% | 2.75% | 2.53% | 2.75% | 2.39% | 2.13% | 1.85% | 2.08% | 2.57% |
Archer-Daniels-Midland Company has shown fluctuating profitability ratios over the past few quarters. The gross profit margin has ranged from 6.27% to 8.00%, with a slight upward trend in recent quarters, indicating the company's ability to control production costs and generate a reasonable level of profit on sales.
The operating profit margin has been more volatile, ranging from 2.93% to 5.15%, with a noticeable dip in profitability in the September and June 2023 quarters. This suggests potential challenges in managing operating expenses and maintaining profitability from core business operations.
Similarly, the pretax margin has varied from 2.17% to 5.24%, showing fluctuations in the company's ability to generate earnings before taxes. The trend seems to be slightly downward, with lower margins in recent quarters compared to the early part of 2022.
Finally, the net profit margin has ranged from 1.85% to 4.37%, with a pattern of variability similar to the other profitability ratios. The company's ability to generate profit after all expenses and taxes has shown some inconsistency, with margins increasing in some quarters but decreasing in others.
Overall, the analysis of profitability ratios for Archer-Daniels-Midland Company indicates mixed performance, with fluctuations in margins suggesting challenges in managing costs and sustaining profitability over the analyzed period. Further examination of the company's cost structure and revenue sources may be warranted to identify areas for improvement and enhance overall profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 3.13% | 2.85% | 3.10% | 3.82% |
| Return on total capital | 16.70% | 16.08% | 16.62% | 17.77% | 18.48% | 16.85% | 14.55% | 12.31% | 11.77% | 10.99% | 9.63% | 9.09% | 7.93% | 7.30% | 8.20% | 7.38% | 9.26% | 6.80% | 7.21% | 8.59% |
| Return on equity (ROE) | 16.25% | 15.61% | 16.63% | 17.92% | 19.22% | 17.10% | 14.75% | 12.96% | 12.22% | 11.90% | 10.72% | 9.93% | 8.86% | 8.22% | 9.18% | 8.11% | 9.99% | 6.31% | 6.96% | 8.73% |
Archer-Daniels-Midland Company's profitability ratios exhibit fluctuating trends over the historical periods reported.
1. Operating Return on Assets (Operating ROA):
- The company's Operating ROA ranged from 4.33% to 8.86% during the most recent period. Operating ROA saw an increasing trend from the fourth quarter of 2021 to the fourth quarter of 2023. This indicates an improving operational efficiency in generating profits from its assets.
2. Return on Assets (ROA):
- ROA varied between 2.85% and 7.58% over the periods analyzed. The ROA trend was volatile, with some periods showing significant increases and decreases. Notably, ROA peaked in the third quarter of 2023. Overall, the company has managed to maintain a positive return on its assets but with fluctuations.
3. Return on Total Capital:
- Return on Total Capital fluctuated between 6.80% and 18.48% across the periods reviewed. The company's ability to generate returns from total capital investments displayed variability, with a notable peak in the first quarter of 2023. The general trend indicates a higher return compared to the Return on Assets, reflecting the impact of capital structure on profitability.
4. Return on Equity (ROE):
- ROE showed a range from 6.31% to 19.22% throughout the periods analyzed. The company's ROE experienced consistent fluctuations, but there was a rising trend from the fourth quarter of 2021 to the second quarter of 2023, followed by a slight decline. This ratio demonstrates the return generated for the shareholders' investments, showing improved performance over some periods.
In summary, Archer-Daniels-Midland Company's profitability ratios demonstrate variability but with certain periods of improvement, especially in ROE and Operating ROA. The company should continue to monitor and enhance its operational efficiency, asset utilization, and capital allocation strategies to maintain and improve its profitability levels in the future.