Archer-Daniels-Midland Company stock research
FY2023 Q2
Archer-Daniels-Midland (ADM) Gross Margin — Quarter Ended Jun 30, 2023
Revenue less cost of revenue equals gross profit, and gross profit divided by revenue yields gross margin. In the current quarter, gross profit and gross margin were lower than the preceding quarter and also slightly lower than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue less cost of revenue equals gross profit, and gross profit divided by revenue yields gross margin. In the current quarter, gross profit and gross margin were lower than the preceding quarter and also slightly lower than the same quarter one year earlier.
- The strongest observable margin driver is the decline in gross profit relative to revenue. Compared with the prior quarter, gross profit decreased while revenue increased, compressing the margin; versus the year-ago quarter, gross profit fell more than the decline in revenue.
- Compared with the immediately preceding quarter, revenue was higher but gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, both revenue and gross profit were lower, with gross margin slightly weaker.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
7.5%
Gross profit
$1.9B
Revenue
$25.2B
Cost of revenue
$23.3B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $24.1B | $2.1B | $22.0B | 8.6% |
| Jun 30, 2023 | $25.2B | $1.9B | $23.3B | 7.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.2 pts
Year-over-year change
Jun 30, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the decline in gross profit relative to revenue. Compared with the prior quarter, gross profit decreased while revenue increased, compressing the margin; versus the year-ago quarter, gross profit fell more than the decline in revenue.
Compared with the immediately preceding quarter, revenue was higher but gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, both revenue and gross profit were lower, with gross margin slightly weaker.
Monitor working capital changes and cash provided by operating activities, as discussed in the liquidity and capital resources section, which impact financial flexibility.