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ADM (Archer-Daniels Midland Co) 3-Year ROIIC % : 89.18% (As of Dec. 2023)


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What is Archer-Daniels Midland Co 3-Year ROIIC %?

3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year. Archer-Daniels Midland Co's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 89.18%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Archer-Daniels Midland Co's 3-Year ROIIC % or its related term are showing as below:

ADM's 3-Year ROIIC % is ranked better than
90.14% of 1825 companies
in the Consumer Packaged Goods industry
Industry Median: 1.91 vs ADM: 89.18

Archer-Daniels Midland Co 3-Year ROIIC % Historical Data

The historical data trend for Archer-Daniels Midland Co's 3-Year ROIIC % 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 3-Year ROIIC % Chart

Archer-Daniels Midland Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.17 1.44 5.34 18.30 89.18

Archer-Daniels Midland Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
3-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 89.18 - - -

Competitive Comparison of Archer-Daniels Midland Co's 3-Year ROIIC %

For the Farm Products subindustry, Archer-Daniels Midland Co's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.


Archer-Daniels Midland Co's 3-Year ROIIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Archer-Daniels Midland Co's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Archer-Daniels Midland Co's 3-Year ROIIC % falls into.



Archer-Daniels Midland Co 3-Year ROIIC % Calculation

Archer-Daniels Midland Co's 3-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 3274.8104 (Dec. 2023) - 1671.3424 (Dec. 2020) )/( 45040 (Dec. 2023) - 43242 (Dec. 2020) )
=1603.468/1798
=89.18%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Archer-Daniels Midland Co  (NYSE:ADM) 3-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Archer-Daniels Midland Co 3-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of Archer-Daniels Midland Co's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Archer-Daniels Midland Co Business Description

Address
77 West Wacker Drive, Suite 4600, Chicago, IL, USA, 60601
Archer-Daniels Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. The company is also one of the largest grain merchandisers through its 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 and is a large producer of corn-based sweeteners, starches, and ethanol.
Executives
Juan R Luciano officer: Executive V.P. & COO 77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Strader Fruit Molly L officer: Vice Pres., Corp. Controller 77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Regina Jones officer: Senior Vice President 7102 COMMERCE WAY, BRENTWOOD TN 37027
Brabander Ellen De director 2500 INNOVATION WAY, GREENFIELD IN 46140
D Cameron Findlay officer: Senior Vice President 77 W. WACKER DR., SUITE 2600, CHICAGO IL 60601
Francisco J Sanchez director 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
Collins James C. Jr. director 1007 MARKET STREET, D-9058, WILMINGTON DE 19898
Vikram Luthar officer: Vice President & Treasurer ARCHER-DANIELS-MIDLAND COMPANY, 77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Christopher M Cuddy officer: President-Corn 77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Vincent F Macciocchi officer: Senior Vice President 77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Ray G Young officer: Sr. Vice President 77 WEST WACKER DR., SUITE 4600, CHICAGO IL 60601
Theodore Iii Colbert director C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, CHICAGO IL 60606-1596
Jennifer L Weber officer: Senior Vice President 1000 LOWES BOULEVARD, MOORESVILLE NC 28117
Joseph D. Taets officer: Vice President 77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601