Archer-Daniels Midland Co (NYSE:ADM) ROC (Joel Greenblatt) %

: 25.10% (As of Dec. 2022)

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Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Archer-Daniels Midland Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2022 was 25.10%.

The historical rank and industry rank for Archer-Daniels Midland Co's ROC (Joel Greenblatt) % or its related term are showing as below:

ADM' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 10.86 Med: 14.43 Max: 26.82
Current: 25.08

During the past 13 years, Archer-Daniels Midland Co's highest ROC (Joel Greenblatt) % was 26.82%. The lowest was 10.86%. And the median was 14.43%.

ADM's ROC (Joel Greenblatt) % is ranked better than
74.2% of 1833 companies
in the Consumer Packaged Goods industry
Industry Median: 10.17 vs ADM: 25.08

Archer-Daniels Midland Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 13.30% per year.

Archer-Daniels Midland Co ROC (Joel Greenblatt) % Historical Data

The historical data trend for Archer-Daniels Midland Co's ROC (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Archer-Daniels Midland Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC (Joel Greenblatt) %

14.91

11.83

11.81

17.60

26.82

Archer-Daniels Midland Co Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
ROC (Joel Greenblatt) %																21.35	24.18	26.04	23.32	25.10

Competitive Comparison

For the Farm Products subindustry, Archer-Daniels Midland Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Archer-Daniels Midland Co ROC (Joel Greenblatt) % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Archer-Daniels Midland Co's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Archer-Daniels Midland Co's ROC (Joel Greenblatt) % falls in comparison to its industry or sector. The grey bar indicates the ROC (Joel Greenblatt) %'s extreme value range as defined by GuruFocus.

Archer-Daniels Midland Co ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %

EBIT

Average of (Net fixed Assets

Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

	Working Capital		(Q: Sep. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(6007	+	13282	+	13044)	-	(8656	+	10782	+	2150)
=	10745

	Working Capital		(Q: Dec. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(6235	+	14771	+	12033)	-	(9886	+	10550	+	2018)
=	10585

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Archer-Daniels Midland Co for the quarter that ended in Dec. 2022 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2022 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2022		Q: Dec. 2022
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	5388	/	( ( (10588 + max(10745, 0))	+	(11021 + max(10585, 0)) )	/	2 )
=	5388	/	( ( 21333	+	21606 )	/	2 )
=	5388	/	21469.5
=	25.10 %

Note: The EBIT data used here is four times the quarterly (Dec. 2022) EBIT data.

Archer-Daniels Midland Co (NYSE:ADM) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.

Archer-Daniels Midland Co ROC (Joel Greenblatt) % Related Terms

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Archer-Daniels Midland Co (NYSE:ADM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Archer-Daniels Midland Co (NYSE:ADM) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

ADM:Mexico ADM:Germany A1DM34:Brazil ARDA:Austria

Address

77 West Wacker Drive, Suite 4600, Chicago, IL, USA, 60601

Website

https://www.adm.com

Archer-Daniels Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. Additionally, the company owns an extensive network of logistical assets to store and transport crops around the globe. ADM also runs a nutrition business that focuses on both human and animal ingredients. The company is also a large producer of corn-based sweeteners, starches, and ethanol.

Executives

Collins James C. Jr.	director	1007 MARKET STREET, D-9058, WILMINGTON DE 19898
Theodore Iii Colbert	director	C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, CHICAGO IL 60606-1596
Strader Fruit Molly L	officer: Vice Pres., Corp. Controller	77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Jennifer L Weber	officer: Senior Vice President	1000 LOWES BOULEVARD, MOORESVILLE NC 28117
Lei Zhang Schlitz	director	5757 N. GREENBAY AVENUE, GLENDALE WI 53129
Michael S Burke	director	C/O AECOM TECHNOLOGY CORPORATION, 555 S. FLOWER STREET, SUITE 3700, LOS ANGELES CA 90071
Stefano Rettore	officer: Senior Vice President	77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Suzan F. Harrison	director	77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Debra A. Sandler	director	KEURIG DR PEPPER INC., 53 SOUTH AVE., BURLINGTON MA 01803
Vincent F Macciocchi	officer: Senior Vice President	77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Christopher M Cuddy	officer: President-Corn	77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Gregory A Morris	officer: Senior Vice President	77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Francisco J Sanchez	director	77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Benjamin I Bard	officer: Vice President	4666 FARIES PARKWAY, DECATUR IL 62526
D Cameron Findlay	officer: Senior Vice President	77 W. WACKER DR., SUITE 2600, CHICAGO IL 60601