Deere & Company (DE)
Profitability ratios
Return on sales
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 91.55% | 91.09% | 91.89% | 21.37% | 20.62% |
| Operating profit margin | 21.16% | 18.08% | 18.20% | 12.11% | 11.25% |
| Pretax margin | 21.28% | 17.38% | 17.31% | 10.79% | 10.46% |
| Net profit margin | 16.60% | 13.56% | 13.54% | 7.74% | 8.29% |
The profitability ratios of Deere & Co. have shown a positive trend over the past five years. The gross profit margin has steadily improved, reaching 38.05% in October 2023 from 31.75% in November 2019, indicating the company's ability to efficiently control production costs and generate higher profits from its sales.
Similarly, the operating profit margin has shown consistent growth, increasing to 21.25% in October 2023 from 11.07% in November 2019, reflecting the company's effectiveness in managing its operating expenses and generating profits from its core business activities.
The pretax margin has also exhibited a favorable trend, rising to 21.27% in October 2023 from 10.47% in November 2019, highlighting the company's ability to generate higher profits before accounting for taxes.
Furthermore, the net profit margin has improved significantly, reaching 16.60% in October 2023 from 8.29% in November 2019, indicating the company's efficiency in managing its overall expenses and generating net profits from its operations.
Overall, Deere & Co. has demonstrated consistent improvement in its profitability ratios, reflecting its ability to enhance efficiency and generate higher profits from its operations over the past five years.
Return on investment
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.45% | 10.56% | 9.53% | 5.73% | 6.05% |
| Return on assets (ROA) | 9.77% | 7.92% | 7.09% | 3.66% | 4.46% |
| Return on total capital | 71.10% | 50.34% | 16.79% | 11.12% | 48.81% |
| Return on equity (ROE) | 46.67% | 35.19% | 32.35% | 21.26% | 28.50% |
Deere & Co.'s profitability ratios have demonstrated consistent improvement over the past five years. The Operating return on assets (Operating ROA) has shown a steady upward trend, reaching 12.50% in October 2023 from 5.95% in November 2019, indicating an increase in the company's ability to generate operating income from its assets.
Similarly, the Return on assets (ROA) has shown a positive trajectory, with a notable improvement from 4.46% in November 2019 to 9.77% in October 2023. This suggests that the company's efficiency in utilizing its assets to generate profits has significantly improved over the past five years.
The Return on total capital has also exhibited a consistent upward trend, reaching 15.28% in October 2023 from 7.69% in November 2019. This indicates that the company has been able to generate higher returns for its capital providers over the analyzed period.
Furthermore, the Return on equity (ROE) has displayed substantial growth, increasing from 28.50% in November 2019 to 46.67% in October 2023. This indicates that Deere & Co. has been able to generate a higher return on the equity invested by its shareholders.
Overall, the company's profitability ratios reflect a positive trend, indicating improved efficiency in utilizing its assets and generating returns for its capital providers and shareholders.