Archer-Daniels-Midland Company (ADM)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 3,483,000 | 3,937,000 | 4,147,000 | 4,456,000 | 4,340,000 | 4,103,000 | 3,598,000 | 3,074,000 | 2,709,000 | 2,614,000 | 2,313,000 | 2,070,000 | 1,772,000 | 1,589,000 | 1,771,000 | 1,537,000 | 1,379,000 | 1,190,000 | 1,319,000 | 1,650,000 |
| Total assets | US$ in thousands | 54,631,000 | 55,093,000 | 55,499,000 | 58,802,000 | 59,774,000 | 58,304,000 | 61,828,000 | 64,866,000 | 56,136,000 | 52,298,000 | 50,958,000 | 51,478,000 | 49,719,000 | 44,795,000 | 44,341,000 | 48,395,000 | 43,997,000 | 41,804,000 | 42,616,000 | 43,151,000 |
| 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% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $3,483,000K ÷ $54,631,000K
= 6.38%
Archer-Daniels-Midland Company's return on assets (ROA) has shown a positive trend over the past several quarters, indicating increasing efficiency in generating profits relative to its total assets. The ROA has steadily improved from 3.18% in March 2020 to 7.58% in March 2023. This signifies that the company has been effectively utilizing its assets to generate profits.
The upward trajectory in ROA suggests that Archer-Daniels-Midland Company has been able to enhance its operational effectiveness and profitability over time. This improvement could be attributed to various factors such as better asset management, cost control measures, increased revenue generation, and strategic investments.
The consistent increase in ROA is a positive signal for investors and stakeholders as it demonstrates the company's ability to generate returns on its investments in assets. It also indicates the management's focus on maximizing profitability and efficiency in utilizing resources.
Overall, the improving trend in Archer-Daniels-Midland Company's ROA reflects positively on its financial performance and operational efficiency, showcasing a promising outlook for the company's future growth and profitability.
Peer comparison
Dec 31, 2023