The Andersons Inc (ANDE)

Profitability ratios

Return on sales

Dec 31, 2024 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
Gross profit margin 6.16% 6.16% 5.49% 5.34% 5.05% 4.30% 4.19% 4.14% 3.95% 4.31% 4.38% 4.28% 4.70% 4.61% 4.83% 4.94% 4.79% 5.39% 5.53% 5.89%
Operating profit margin 0.74% 1.04% 0.71% 1.01% 0.47% -0.01% 0.08% 0.12% 0.52% 23.63% 25.23% 27.00% 30.00% 22.13% 24.50% 27.79% 30.05% 0.65% 1.04% 1.84%
Pretax margin 1.28% 1.32% 1.05% 1.22% 0.94% 0.57% 0.72% 0.82% 0.99% 1.17% 1.09% 0.88% 1.06% 1.02% 0.89% 0.64% -0.03% -0.12% -0.20% 0.10%
Net profit margin 1.01% 1.06% 0.83% 0.89% 0.69% 0.36% 0.51% 0.64% 0.76% 0.92% 0.86% 0.67% 0.82% 0.80% 0.72% 0.68% 0.10% -0.02% -0.06% -0.07%

The Andersons Inc's profitability ratios have shown some fluctuations over the periods.

1. Gross Profit Margin: The gross profit margin, which indicates the efficiency of a company in generating profit from its core activities, has ranged between 3.95% and 6.16%. There was a decline from 5.89% in March 2020 to 3.95% in December 2022, followed by an increase to 6.16% by December 2024.

2. Operating Profit Margin: The operating profit margin reflects the percentage of revenue that is available to cover non-operating expenses. The margin was volatile, with a significant increase from 30.05% in December 2020 to a low of 0.08% in June 2023. This was followed by a recovery to 1.04% by September 2024.

3. Pretax Margin: The pretax margin, indicating the company's profitability before taxes, improved gradually from -0.20% in June 2020 to 1.28% in December 2024. There were fluctuations along the way, with the margin peaking at 1.32% in September 2024.

4. Net Profit Margin: The net profit margin, representing the percentage of revenue that translates into net income, varied between -0.07% and 1.06%. The margin trended upwards from negative figures in 2020 to 1.01% in December 2024.

In conclusion, The Andersons Inc's profitability ratios have shown mixed performance over the periods, with improvements in some margins and fluctuations in others. It is essential for the company to focus on sustaining and improving profitability to ensure long-term financial health and stability.


Return on investment

Dec 31, 2024 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
Operating return on assets (Operating ROA) 2.01% 3.47% 2.65% 4.20% 1.82% -0.05% 0.36% 0.48% 1.96% 87.87% 81.02% 73.48% 82.80% 67.66% 61.86% 57.60% 56.72% 1.42% 2.37% 3.92%
Return on assets (ROA) 2.77% 3.54% 3.10% 3.73% 2.62% 1.65% 2.41% 2.70% 2.84% 3.43% 2.76% 1.84% 2.28% 2.44% 1.82% 1.42% 0.18% -0.05% -0.15% -0.14%
Return on total capital 4.20% 6.29% 4.69% 7.45% 3.79% -0.09% 0.71% 1.20% 5.35% 229.47% 221.77% 227.62% 226.15% 159.17% 134.65% 132.05% 131.11% -4.06% -2.64% 0.26%
Return on equity (ROE) 8.35% 9.04% 7.82% 9.49% 7.89% 4.76% 6.99% 9.48% 10.94% 12.71% 11.20% 8.67% 9.70% 8.74% 7.19% 6.15% 0.80% -0.17% -0.51% -0.59%

The profitability ratios of The Andersons Inc show fluctuating performance over the periods analyzed.

1. Operating Return on Assets (Operating ROA) has shown a significant increase from around 3.92% in March 2020 to a peak of 87.87% in September 2022, before dropping to 2.01% by December 2024. This ratio indicates how efficiently the company is generating profits from its operations relative to its total assets.

2. Return on Assets (ROA) also displays a similar trend, starting from negative figures in the second quarter of 2020 and gradually increasing to 3.54% by September 2024. ROA measures the company's ability to generate earnings from its total assets, regardless of the financing structure.

3. Return on Total Capital reached a peak of 229.47% in September 2022, reflecting a very high return on the company's total capital employed. However, this ratio fluctuated significantly over the periods reviewed, indicating varying levels of profitability relative to the total capital invested.

4. Return on Equity (ROE) portrays a steady increase from negative figures in the first three quarters of 2020 to a peak of 12.71% in September 2022. ROE measures the profitability of a company in relation to its shareholders' equity and signifies how well the company is utilizing equity investments to generate profits.

Overall, The Andersons Inc's profitability has shown both strong growth and fluctuations, with certain periods indicating high profitability ratios while others reflecting lower performance. The management should focus on sustaining and enhancing profitability metrics to ensure consistent financial performance in the long term.