Archer-Daniels-Midland Company (ADM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,483,000 | 4,340,000 | 2,709,000 | 1,772,000 | 1,379,000 |
| Total assets | US$ in thousands | 54,631,000 | 59,774,000 | 56,136,000 | 49,719,000 | 43,997,000 |
| ROA | 6.38% | 7.26% | 4.83% | 3.56% | 3.13% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $3,483,000K ÷ $54,631,000K
= 6.38%
Archer-Daniels-Midland Company's Return on Assets (ROA) has shown a general increasing trend over the past five years, with fluctuations from 2019 to 2023. In 2023, the ROA stood at 6.38%, marking a slight decrease from the previous year's 7.26%, but reflecting a significant improvement compared to 2021 and prior years. This indicates that the company is effectively generating profit relative to its total assets, suggesting efficient asset utilization and potentially improved profitability. It would be prudent to further investigate the factors contributing to the ROA fluctuations to assess the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023