Archer-Daniels-Midland Company stock research
FY2024 Q1
Archer-Daniels-Midland (ADM) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased sharply compared to the previous quarter and the same quarter last year, while cost of revenue decreased modestly and gross profit was flat versus the prior quarter but lower year-over-year. As a result, gross margin improved significantly.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue decreased sharply compared to the previous quarter and the same quarter last year, while cost of revenue decreased modestly and gross profit was flat versus the prior quarter but lower year-over-year. As a result, gross margin improved significantly.
- The strongest observable driver of the gross margin change was the relationship between revenue and cost of revenue. Revenue fell much more than cost of revenue, which allowed gross profit to remain steady and the margin to expand.
- Compared to the previous quarter, revenue was lower, cost of revenue was lower, gross profit was unchanged, and gross margin was higher. Compared to the same quarter a year ago, revenue was lower, cost of revenue was lower, gross profit was lower, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.9%
Gross profit
$1.7B
Revenue
$5.9B
Cost of revenue
$20.2B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+19.3 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% |
| Sep 30, 2023 | $6.4B | $1.8B | $19.9B | 28.3% |
| Mar 31, 2024 | $5.9B | $1.7B | $20.2B | 27.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.4 pts
Year-over-year change
Mar 31, 2023
+19.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change was the relationship between revenue and cost of revenue. Revenue fell much more than cost of revenue, which allowed gross profit to remain steady and the margin to expand.
Compared to the previous quarter, revenue was lower, cost of revenue was lower, gross profit was unchanged, and gross margin was higher. Compared to the same quarter a year ago, revenue was lower, cost of revenue was lower, gross profit was lower, and gross margin was higher.
Monitor the company's operating cash flow, as it improved significantly compared to the prior year period according to the filing.