Archer-Daniels-Midland Company (ADM)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,800,000 | 1,798,000 | 2,601,000 | 3,042,000 | 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 |
| Total assets | US$ in thousands | 35,910,000 | 52,199,000 | 52,698,000 | 54,831,000 | 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 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,800,000K ÷ $35,910,000K
= 5.01%
Archer-Daniels-Midland Company's return on assets (ROA) has shown fluctuating trends over the past few years based on the provided data. The company's ROA increased gradually from 3.18% as of March 31, 2020, reaching a peak of 7.58% as of March 31, 2023, before declining to 5.01% as of December 31, 2024.
The ROA metric measures the efficiency of a company in generating profits from its assets. A higher ROA indicates that the company is more efficient in utilizing its assets to generate earnings. In the case of Archer-Daniels-Midland Company, the increasing trend in ROA from 2020 to 2023 reflected improved asset utilization and profitability.
However, the slight decline in ROA towards the end of the period, particularly in the last quarter of 2024, may suggest potential challenges in maintaining or further improving asset efficiency and profitability. It is essential for the company to closely monitor and manage its asset base to ensure sustainable and profitable operations in the future.
Peer comparison
Dec 31, 2024