The Andersons Inc (ANDE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 6.16% | 5.05% | 3.95% | 4.70% | 4.54% |
| Operating profit margin | 0.74% | 0.48% | 0.53% | 0.17% | -1.70% |
| Pretax margin | 1.28% | 0.94% | 0.99% | 1.06% | -0.04% |
| Net profit margin | 1.01% | 0.69% | 0.76% | 0.82% | 0.10% |
The Gross Profit Margin of The Andersons Inc has shown a slight increase from 4.54% in December 31, 2020, to 6.16% in December 31, 2024. This indicates that the company is improving its ability to generate profit from its revenue after accounting for the cost of goods sold.
The Operating Profit Margin, which was negative at -1.70% in December 31, 2020, has gradually increased to 0.74% in December 31, 2024. This suggests that the company has been able to better control its operating expenses relative to its revenue over the years.
The Pretax Margin of The Andersons Inc shows a fluctuating trend, starting from -0.04% in December 31, 2020, and peaking at 1.28% in December 31, 2024. This indicates the company's ability to generate profit before taxes relative to its total revenue, with some variability in performance over the years.
The Net Profit Margin of the company has shown a consistent improvement from 0.10% in December 31, 2020, to 1.01% in December 31, 2024. This indicates that the company has been able to increase its net income as a percentage of total revenue, reflecting better overall profitability.
Overall, The Andersons Inc has demonstrated an improvement in its profitability ratios over the years, as seen in the increasing trends in Gross Profit Margin, Operating Profit Margin, Pretax Margin, and Net Profit Margin. This suggests effective cost management and operational efficiency, leading to enhanced profitability for the company.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.01% | 1.84% | 2.01% | 0.48% | -3.21% |
| Return on assets (ROA) | 2.77% | 2.62% | 2.84% | 2.28% | 0.18% |
| Return on total capital | 4.20% | 7.51% | 10.12% | 8.00% | -0.10% |
| Return on equity (ROE) | 8.35% | 7.89% | 10.94% | 9.70% | 0.80% |
The profitability ratios of The Andersons Inc show a mixed performance over the years.
- Operating return on assets (Operating ROA): The company's operating ROA improved from -3.21% in 2020 to 2.01% in 2022, indicating better efficiency in generating operating profits from its assets. However, it slightly declined to 1.84% in 2023 and increased again to 2.01% in 2024.
- Return on assets (ROA): The ROA also showed improvement over the years, increasing from 0.18% in 2020 to 2.77% in 2024. This indicates that the company's overall profitability increased as it generated more profits relative to its total assets.
- Return on total capital: The return on total capital fluctuated during the period, with a significant improvement from -0.10% in 2020 to 10.12% in 2022. However, it decreased to 4.20% in 2024, suggesting that the company may have faced challenges in efficiently utilizing its total capital for generating returns.
- Return on equity (ROE): The return on equity also showed a positive trend, starting at 0.80% in 2020 and reaching 8.35% in 2024. This indicates that the company provided a better return to its equity shareholders over the years.
Overall, despite some fluctuations, The Andersons Inc has demonstrated improvements in its profitability ratios, particularly in ROA and ROE, which reflect its ability to generate returns for its stakeholders.