Archer-Daniels-Midland Company (ADM)
Return on equity (ROE)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 1,379,000 |
| Total stockholders’ equity | US$ in thousands | 21,974,000 | 22,148,000 | 23,219,000 | 21,432,000 | 25,228,000 | 24,939,000 | 24,860,000 | 22,584,000 | 23,997,000 | 24,393,000 | 23,722,000 | 22,177,000 | 21,969,000 | 21,582,000 | 20,841,000 | 20,000,000 | 19,322,000 | 19,293,000 | 18,952,000 | 13,808,000 |
| ROE | 8.18% | 11.74% | 13.10% | 16.25% | 15.61% | 16.63% | 17.92% | 19.22% | 17.10% | 14.75% | 12.96% | 12.22% | 11.90% | 10.72% | 9.93% | 8.86% | 8.22% | 9.18% | 8.11% | 9.99% |
September 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,798,000K ÷ $21,974,000K
= 8.18%
Archer-Daniels-Midland Company's return on equity (ROE) has shown some fluctuations over the past few quarters. The ROE has ranged from 8.18% to 19.22% over the past eight quarters.
In general, the trend shows a decline in ROE from a peak of 19.22% in March 2023 to the most recent figure of 8.18% in September 2024. This downward trend indicates a decrease in the company's profitability relative to its equity.
It's important to note that ROE is a key financial ratio that measures a company's ability to generate profits from shareholders' equity. A higher ROE is generally desirable as it indicates that the company is efficient in utilizing its equity to generate profits for the shareholders.
The fluctuations in ROE for Archer-Daniels-Midland Company over the analyzed periods may be due to various factors such as changes in profitability, financial leverage, or asset management efficiency. Investors and stakeholders should carefully monitor the company's ROE over time to assess its financial health and performance.
Peer comparison
Sep 30, 2024