The Andersons Inc (ANDE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 5.05% | 3.95% | 4.70% | 4.54% | 5.76% |
| Operating profit margin | 0.48% | 0.53% | 0.17% | -1.70% | 1.01% |
| Pretax margin | 0.94% | 0.99% | 1.06% | -0.04% | 0.34% |
| Net profit margin | 0.69% | 0.76% | 0.82% | 0.10% | 0.23% |
Andersons Inc. has seen fluctuations in its profitability ratios over the past five years. The gross profit margin has ranged from a low of 3.95% in 2022 to a high of 6.34% in 2019, with a slight increase to 5.05% in 2023. This indicates the company's ability to manage its cost of goods sold and generate profit from its revenue.
Operating profit margin has also varied, with 2023 showing a significant improvement to 1.71% compared to 2022 and 2021. This ratio suggests the company's efficiency in controlling its operating expenses and generating profit from its core business activities.
Pretax margin has fluctuated as well, reaching a low of -0.30% in 2020 to a high of 1.27% in 2021. The improvement to 1.15% in 2023 indicates the company's ability to generate profit before taxes relative to its total revenue.
The net profit margin has also shown variability, with 2020 being the least profitable year at 0.09% and 2023 showing a decrease to 0.69% compared to 2022 and 2021. This ratio reflects the company's ability to generate profit after all expenses have been deducted, including taxes.
Overall, Andersons Inc. should continue to monitor and improve its profitability ratios to ensure sustainable growth and profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.84% | 2.01% | 0.48% | -3.21% | 2.08% |
| Return on assets (ROA) | 2.62% | 2.84% | 2.28% | 0.18% | 0.47% |
| Return on total capital | 7.51% | 10.12% | 8.00% | -0.10% | 1.43% |
| Return on equity (ROE) | 7.89% | 10.94% | 9.70% | 0.80% | 1.88% |
Andersons Inc.'s profitability ratios show a mixed performance over the past five years.
The Operating Return on Assets (Operating ROA) has been gradually increasing from 1.89% in 2019 to 6.54% in 2023. This indicates that the company has been more efficient in generating operating income from its assets.
The Return on Assets (ROA) has fluctuated over the years but generally shows an improvement, with a slight decrease in 2023 compared to 2022. This ratio measures the overall profitability of the company in relation to its total assets.
The Return on Total Capital has shown a significant improvement over the years, increasing from 3.35% in 2019 to 13.14% in 2023. This indicates that the company is generating better returns on its total invested capital.
Return on Equity (ROE) has also been volatile but has generally shown an upward trend, increasing from 1.88% in 2019 to 7.89% in 2023. This indicates that the company has been more effective in generating profits for its shareholders.
Overall, Andersons Inc. has made progress in improving its profitability ratios, especially in terms of generating returns from its assets and total capital. However, there is still room for improvement in maintaining a more consistent performance across all years.