Deere & Company (DE)
Profitability ratios
Return on sales
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.59% | 88.87% | 37.02% | 91.55% | 30.67% |
| Operating profit margin | 22.62% | 17.48% | 24.22% | 21.16% | 17.60% |
| Pretax margin | 18.22% | 17.78% | 21.61% | 21.28% | 17.80% |
| Net profit margin | 14.05% | 13.73% | 16.87% | 16.60% | 13.91% |
Based on the provided data, we can analyze the profitability ratios of Deere & Company over the period from October 31, 2022, to October 31, 2024.
1. Gross Profit Margin:
- The gross profit margin for Deere & Company fluctuated during the period. It was 30.67% on October 31, 2022, and increased significantly to 91.55% on October 29, 2023. However, it decreased to 37.02% on October 31, 2023, before experiencing another substantial increase to 88.87% on October 27, 2024. Finally, it stood at 38.59% on October 31, 2024. The overall trend shows significant fluctuations in gross profit margin over the period.
2. Operating Profit Margin:
- Deere & Company's operating profit margin also varied across the period. It was 17.60% on October 31, 2022, increased to 21.16% on October 29, 2023, and further to 24.22% on October 31, 2023. However, there was a decline to 17.48% on October 27, 2024, followed by a slight increase to 22.62% on October 31, 2024. The operating profit margin demonstrates fluctuations with an overall upward trend, despite some temporary declines.
3. Pretax Margin:
- The pretax margin of Deere & Company shows a similar pattern to the operating profit margin. It was 17.80% on October 31, 2022, increased to 21.28% on October 29, 2023, and further to 21.61% on October 31, 2023. However, it decreased to 17.78% on October 27, 2024, and slightly increased to 18.22% on October 31, 2024. The pretax margin also exhibits fluctuations with an overall positive trend over the period.
4. Net Profit Margin:
- The net profit margin of Deere & Company experienced fluctuations similar to the gross and operating profit margins. It was 13.91% on October 31, 2022, increased to 16.60% on October 29, 2023, and further to 16.87% on October 31, 2023. However, it decreased to 13.73% on October 27, 2024, and slightly increased to 14.05% on October 31, 2024. The net profit margin shows variability with an overall positive trend, albeit with some temporary declines.
Overall, Deere & Company's profitability ratios demonstrate fluctuations in margins over the analyzed period. While there were significant increases in certain periods, the company also faced declines in profitability metrics. Investors and stakeholders should consider these variations when assessing the company's financial performance.
Return on investment
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.65% | 8.42% | 14.02% | 12.45% | 10.03% |
| Return on assets (ROA) | 6.62% | 6.62% | 9.77% | 9.77% | 7.92% |
| Return on total capital | 54.97% | 54.92% | 71.02% | 71.10% | 50.29% |
| Return on equity (ROE) | 31.09% | 31.09% | 46.67% | 46.67% | 35.19% |
Deere & Company's profitability ratios have shown some fluctuations over the period under review.
1. Operating Return on Assets (Operating ROA): This ratio indicates the efficiency of the company in generating operating income from its assets. Deere & Company's Operating ROA increased from 10.03% in October 2022 to 14.02% in October 2023, showing improved operational efficiency. However, it declined to 8.42% in October 2024 before recovering slightly to 10.65% by the end of October 2024.
2. Return on Assets (ROA): This ratio measures the company's overall ability to generate profits from its total assets. Deere & Company's ROA increased from 7.92% in October 2022 to 9.77% in October 2023 and remained stable at the same level in October 2024. Although there was an improvement in profitability, it slightly declined in the most recent year.
3. Return on Total Capital: This ratio evaluates how well the company is using its total capital to generate profits. Deere & Company's Return on Total Capital increased significantly from 50.29% in October 2022 to 71.10% in October 2023 before slightly decreasing to 54.97% by October 2024.
4. Return on Equity (ROE): This ratio measures the return the company generates on the shareholders' equity. Deere & Company's Return on Equity increased from 35.19% in October 2022 to 46.67% in October 2023 and remained stable at this level in October 2024. The company has shown consistent profitability in generating returns for its equity holders.
In conclusion, while Deere & Company has demonstrated improvements in certain profitability ratios over the years, some ratios have shown fluctuations. It is essential for the company to sustain and enhance its profitability by effectively managing its assets and capital to ensure sustainable growth and value creation for its shareholders.