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← Archer-Daniels-Midland

The business behind the dividend

MeasureADMMedianFormula
Return on equity4.7%11.7%Net income ÷ shareholders’ equity
Return on capital employed4.1%10.1%Operating income ÷ (equity + total debt)
Owner earnings$1.01bn$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$4.20bn$746.10mOperating cash flow − capital expenditure
Operating margin5.0%15.0%Operating income ÷ revenue
Net margin4.3%10.2%Net income ÷ revenue
Debt to equity0.33x0.79xTotal debt ÷ shareholders’ equity
Interest cover2.05x4.43xOperating income ÷ interest expense
Current ratio1.37x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capital0.93x2.30xLong-term debt ÷ (current assets − current liabilities)
Cash conversion5.06x1.78xOperating cash flow ÷ net income

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity4.7%8.1%14.4%17.8%12.0%8.9%7.2%9.5%8.7%7.4%8.7%
Return on capital employed4.1%7.4%13.3%15.9%10.7%6.7%5.9%7.6%6.4%7.6%7.4%
Operating margin5.0%9.3%16.7%19.0%3.9%2.9%2.5%3.2%2.6%2.9%3.2%
Net margin4.3%7.4%13.6%15.7%3.2%2.8%2.1%2.8%2.6%2.1%2.8%
Debt to equity0.33x0.37x0.34x0.36x0.38x0.39x0.40x0.44x0.36x0.39x0.37x
Current ratio1.37x1.39x1.60x1.46x1.45x1.50x1.55x1.75x1.59x1.60x1.50x
Cash conversion5.06x1.55x1.28x0.80x2.43x-1.35x-3.95x-2.64x-3.74x-5.09x-1.35x

How it compares in consumer staples

Among the 38 consumer staples companies here measured on free cash flow, Archer-Daniels-Midland pays out less than 36 of them. The median for that group is 65.1%, against this company’s 23.5%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 43 in consumer staples →