Deere & Company (DE)
Profitability ratios
Return on sales
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 88.87% | 91.55% | 91.09% | 91.89% | 21.37% |
| Operating profit margin | 17.48% | 21.16% | 18.08% | 18.20% | 12.11% |
| Pretax margin | 17.78% | 21.28% | 17.38% | 17.31% | 10.79% |
| Net profit margin | 13.73% | 16.60% | 13.56% | 13.54% | 7.74% |
Deere & Company has shown a declining trend in its profitability ratios over the past five years. The gross profit margin has decreased from 91.09% in 2022 to 88.87% in 2024. This indicates that the company's cost of goods sold has risen relative to its net sales revenue.
Similarly, the operating profit margin has also experienced a decline, falling from 18.20% in 2021 to 17.48% in 2024. This implies that Deere's operating expenses have increased compared to its operating income.
The pretax margin reflects a similar downward trajectory, dropping from 17.31% in 2021 to 17.78% in 2024. This indicates that Deere's pre-tax profitability has slightly improved in 2024 but remains lower than in previous years.
The net profit margin, which represents the company's bottom line profitability, has also shown a decreasing trend over the years, declining from 13.54% in 2021 to 13.73% in 2024. This suggests that Deere's net income as a percentage of its revenue has slightly increased in 2024, but overall profitability remains lower compared to previous years.
In conclusion, Deere & Company's profitability ratios have generally decreased over the past five years, reflecting challenges in managing costs and maintaining profitability levels. Investors and stakeholders may want to further investigate the factors contributing to this decline and assess the company's strategies for improving profitability in the future.
Return on investment
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.42% | 12.45% | 10.56% | 9.53% | 5.73% |
| Return on assets (ROA) | 6.62% | 9.77% | 7.92% | 7.09% | 3.66% |
| Return on total capital | 54.92% | 71.10% | 50.34% | 16.79% | 11.12% |
| Return on equity (ROE) | 31.09% | 46.67% | 35.19% | 32.35% | 21.26% |
Deere & Company's profitability ratios show a fluctuating trend over the past five years.
1. Operating return on assets (Operating ROA) has decreased from 5.73% in 2020 to 8.42% in 2024, indicating an improvement in the company's operational efficiency in generating profits from its assets.
2. Return on assets (ROA) has also shown an upward trend, increasing from 3.66% in 2020 to 6.62% in 2024, reflecting the company's ability to generate earnings relative to its total assets.
3. Return on total capital has exhibited significant fluctuations, ranging from 11.12% in 2020 to 54.92% in 2024. This ratio indicates the company's efficiency in generating profits from both equity and debt capital.
4. Return on equity (ROE) has demonstrated a positive trend, increasing from 21.26% in 2020 to 31.09% in 2024. This suggests that the company has been successful in generating profits for its shareholders.
Overall, the improvements in operating return on assets, return on assets, return on total capital, and return on equity reflect positively on Deere & Company's profitability and efficiency in utilizing its assets and capital to generate returns for its stakeholders.