Deere & Company (DE)
Profitability ratios
Return on sales
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 50.21% | 63.04% | 61.51% | 65.09% | 65.63% | 65.35% | 64.54% | 63.89% | 62.02% | 64.22% | 63.66% | 51.65% | 64.35% | 47.89% | 62.43% | 60.63% | 60.93% | 61.93% | 47.16% | 61.44% |
| Operating profit margin | -33.97% | -13.40% | -9.32% | 49.89% | 50.41% | 50.11% | 49.98% | 33.81% | 33.88% | 22.98% | 22.99% | 23.62% | 22.30% | 21.79% | 20.22% | 19.47% | 19.49% | 18.72% | 17.40% | 16.07% |
| Pretax margin | 14.54% | 16.11% | 17.88% | 19.48% | 19.58% | 19.67% | 19.53% | 19.38% | 20.54% | 21.60% | 22.13% | 22.27% | 21.46% | 20.39% | 19.27% | 18.86% | 18.74% | 18.96% | 17.82% | 16.44% |
| Net profit margin | 11.82% | 12.42% | 13.58% | 14.60% | 14.89% | 15.19% | 15.14% | 15.09% | 16.24% | 17.27% | 17.50% | 17.70% | 16.82% | 15.70% | 15.06% | 14.54% | 14.60% | 14.98% | 14.14% | 13.31% |
The profitability ratios of Deere & Company have shown some fluctuations over the periods provided.
1. Gross Profit Margin: Deere & Company's gross profit margin has ranged from a low of 47.16% to a high of 65.63% over the periods analyzed. The company has seen variations in its ability to generate profits after accounting for the cost of goods sold.
2. Operating Profit Margin: The operating profit margin of Deere & Company has fluctuated significantly, with some periods showing strong margins above 20%, while other periods have shown negative margins, indicating operating losses. The company's ability to control operating expenses has varied over time.
3. Pretax Margin: Deere & Company's pretax margin has also shown fluctuations, ranging from a low of 14.54% to a high of 22.27%. This ratio indicates the company's ability to generate profits before accounting for taxes on its income.
4. Net Profit Margin: Deere & Company's net profit margin has varied between a low of 11.82% and a high of 17.70%. This ratio reflects the company's ability to generate profits after all expenses, including taxes, have been deducted.
Overall, these ratios suggest that Deere & Company has experienced some volatility in its profitability over the periods analyzed. It will be important for the company to continue monitoring and managing its costs and expenses to ensure sustained profitability in the future.
Return on investment
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -14.19% | -5.99% | -4.53% | 26.01% | 25.81% | 25.74% | 25.75% | 18.21% | 19.48% | 13.67% | 14.12% | 13.91% | 12.51% | 12.74% | 12.33% | 12.18% | 12.56% | 11.56% | 9.89% | 8.62% |
| Return on assets (ROA) | 4.94% | 5.55% | 6.60% | 7.61% | 7.63% | 7.80% | 7.80% | 8.13% | 9.34% | 10.27% | 10.75% | 10.42% | 9.44% | 9.18% | 9.18% | 9.10% | 9.41% | 9.25% | 8.04% | 7.14% |
| Return on total capital | 43.03% | 48.81% | 55.66% | 62.02% | 61.25% | 61.49% | 61.06% | 62.30% | 67.79% | 74.27% | 76.85% | 68.79% | 63.35% | 60.72% | 58.22% | 57.58% | 59.49% | 57.04% | 50.96% | 16.06% |
| Return on equity (ROE) | 22.66% | 26.09% | 31.02% | 35.59% | 35.66% | 36.33% | 36.33% | 37.33% | 42.89% | 49.09% | 51.34% | 46.75% | 42.33% | 40.29% | 39.42% | 39.07% | 41.82% | 41.09% | 36.69% | 31.75% |
Based on the provided data, we can analyze the profitability ratios of Deere & Company:
1. Operating Return on Assets (Operating ROA):
The Operating Return on Assets shows the efficiency of the company in generating profits from its operational assets. Deere & Company's Operating ROA has been consistently improving from 8.62% on May 1, 2022, to a peak of 26.01% on July 31, 2024. This trend indicates that the company has been effectively utilizing its assets to increase its operating profitability.
2. Return on Assets (ROA):
The Return on Assets ratio measures the overall profitability of the company in relation to its total assets. Deere & Company's ROA has shown fluctuating performance over the analyzed period, ranging from 4.94% on January 31, 2025, to a high of 10.75% on October 29, 2023. While the ROA experienced some volatility, it generally demonstrated a positive trend, indicating the company's ability to generate profits from its asset base.
3. Return on Total Capital:
The Return on Total Capital indicates the efficiency of the company in generating returns for both equity and debt holders. Deere & Company's Return on Total Capital has shown a decreasing trend from 76.85% on October 29, 2023, to 43.03% on January 31, 2025. This decline may indicate challenges in maintaining profitability relative to the total capital employed.
4. Return on Equity (ROE):
The Return on Equity ratio measures the return generated on the shareholders' equity investment. Deere & Company's ROE has also exhibited a decreasing trend, declining from 51.34% on October 29, 2023, to 22.66% on January 31, 2025. This trend suggests a decrease in the company's ability to generate profits from the shareholders' equity.
In conclusion, while Deere & Company has shown strength in operating profitability, there are signs of declining overall profitability and returns for investors over the analyzed period. It is important for stakeholders to further investigate the reasons behind these trends and assess the company's strategies to improve profitability and returns in the future.