Archer-Daniels-Midland Company (ADM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,800,000 | 3,483,000 | 4,340,000 | 2,709,000 | 1,772,000 |
| Total assets | US$ in thousands | 53,271,000 | 54,631,000 | 59,774,000 | 56,136,000 | 49,719,000 |
| ROA | 3.38% | 6.38% | 7.26% | 4.83% | 3.56% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,800,000K ÷ $53,271,000K
= 3.38%
Archer-Daniels-Midland Company's return on assets (ROA) has shown varying trends over the five-year period from December 31, 2020, to December 31, 2024. The ROA increased from 3.56% in 2020 to 7.26% in 2022, indicating a significant improvement in the company's ability to generate profit from its assets. However, in 2023, the ROA slightly decreased to 6.38%, followed by a notable drop to 3.38% in 2024.
The fluctuation in ROA suggests that Archer-Daniels-Midland's efficiency in utilizing its assets to generate profits has been inconsistent during the period under review. It is essential for the company to closely monitor and manage its asset utilization to maintain a consistent and optimal ROA level, ensuring sustainable profitability and value creation for its shareholders.
Peer comparison
Dec 31, 2024