Archer-Daniels-Midland Company (ADM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 21,432,000 | 22,584,000 | 22,177,000 | 20,000,000 | 13,808,000 |
| ROE | 16.25% | 19.22% | 12.22% | 8.86% | 9.99% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,483,000K ÷ $21,432,000K
= 16.25%
Archer-Daniels-Midland Company's return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE was 16.25%, which is a decrease from the previous year's ROE of 19.22%. Despite this decline, the company's ROE remains above the levels recorded in 2020 and 2019, indicating improved profitability and efficiency in 2023 compared to those years.
The increase in ROE from 2020 to 2022 demonstrates a positive trend in the company's ability to generate earnings from shareholders' equity. However, the drop in ROE in 2023 suggests a potential decrease in profitability or efficiency relative to the previous year.
Overall, Archer-Daniels-Midland Company's ROE performance has been relatively strong in recent years, with fluctuations reflecting changes in the company's financial performance and operational effectiveness. Investors and stakeholders may continue to monitor ROE as an important metric to assess the company's profitability and utilization of equity capital.
Peer comparison
Dec 31, 2023