Archer-Daniels-Midland Company (ADM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,961,000 | 4,947,000 | 5,638,000 | 3,597,000 | 2,203,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 22,168,000 | 24,132,000 | 24,284,000 | 22,477,000 | 20,000,000 |
| Return on total capital | 13.36% | 20.50% | 23.22% | 16.00% | 11.02% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,961,000K ÷ ($—K + $22,168,000K)
= 13.36%
Archer-Daniels-Midland Company's return on total capital has depicted an upward trend over the past five years. The return on total capital stood at 11.02% as of December 31, 2020, and progressively increased to 16.00% by December 31, 2021. Subsequently, there was a significant rise to 23.22% by December 31, 2022, indicating improved capital efficiency. However, by December 31, 2023, the return on total capital slightly decreased to 20.50%, but remained at a relatively high level. Finally, by December 31, 2024, the return on total capital decreased to 13.36%, suggesting some potential challenges in capital utilization efficiency. Overall, despite fluctuations in the return on total capital, Archer-Daniels-Midland Company has demonstrated periods of strong capital performance, with 2022 showing a particularly noteworthy improvement.
Peer comparison
Dec 31, 2024