Archer-Daniels-Midland Company (ADM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 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 | 18,873,000 | 18,955,000 | 18,895,000 |
| ROE | 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% | 6.31% | 6.96% | 8.73% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,483,000K ÷ $21,432,000K
= 16.25%
Archer-Daniels-Midland Company's return on equity (ROE) fluctuated over the past 10 quarters, ranging from a low of 6.31% to a high of 19.22%. The upward trend in ROE from the fourth quarter of 2019 through the first quarter of 2023 indicates improved efficiency in generating profits from shareholders' equity.
In the most recent quarter (December 31, 2023), the ROE stood at 16.25%, reflecting the company's ability to generate $0.1625 in net income for each dollar of shareholder equity. This suggests that Archer-Daniels-Midland has effectively utilized its equity to generate profits for its shareholders.
The consistent positive ROE figures, especially surpassing the industry average, indicate that the company is effectively managing its assets and liabilities to generate profits and create value for its shareholders. However, the slight decrease in the ROE in the latest quarter compared to the previous quarter could indicate a potential slowdown in profitability growth.
Overall, Archer-Daniels-Midland Company's ROE performance demonstrates a steady improvement in profitability and efficiency in utilizing shareholder equity over the analyzed period, indicating a positive outlook for the company's financial health and management effectiveness.
Peer comparison
Dec 31, 2023