Archer-Daniels-Midland Company (ADM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,053,000 | 3,954,000 | 4,477,000 | 4,958,000 | 5,378,000 | 5,516,000 | 5,793,000 | 5,604,000 | 5,335,000 | 4,721,000 | 3,998,000 | 3,552,000 | 3,298,000 | 2,890,000 | 2,661,000 | 2,212,000 | 1,989,000 | 2,289,000 | 2,033,000 | 1,990,000 |
| Long-term debt | US$ in thousands | 7,578,000 | 8,247,000 | 8,245,000 | 8,259,000 | 8,224,000 | 8,244,000 | 7,745,000 | 7,735,000 | 7,671,000 | 8,062,000 | 8,752,000 | 8,011,000 | 8,039,000 | 8,432,000 | 8,437,000 | 7,885,000 | 7,922,000 | 8,632,000 | 8,613,000 | 7,672,000 |
| 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 |
| Return on total capital | 10.33% | 13.01% | 14.23% | 16.70% | 16.08% | 16.62% | 17.77% | 18.48% | 16.85% | 14.55% | 12.31% | 11.77% | 10.99% | 9.63% | 9.09% | 7.93% | 7.30% | 8.20% | 7.38% | 9.26% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,053,000K ÷ ($7,578,000K + $21,974,000K)
= 10.33%
Archer-Daniels-Midland Company's return on total capital has shown fluctuations over the past several quarters. The return on total capital has generally been on a positive trend, peaking at 18.48% in the fourth quarter of 2022 before fluctuating in the range of 10%-16% in recent quarters. The company's return on total capital was relatively lower in the first and second quarters of 2021 but has since improved.
Overall, Archer-Daniels-Midland Company has been effectively utilizing its capital to generate returns for its stakeholders, with the return on total capital varying between 7.30% and 18.48% in the provided data. This metric indicates the company's efficiency in using both debt and equity capital to generate profits, although it is important to analyze it in conjunction with other financial metrics to get a comprehensive understanding of the company's financial performance.
Peer comparison
Sep 30, 2024