Archer-Daniels-Midland Company stock research
FY2024 Q4
Archer-Daniels-Midland (ADM) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose, resulting in a slightly lower gross margin. Compared to the same quarter one year earlier, revenue was substantially lower, gross profit was lower, cost of revenue was lower, and gross margin was higher.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose, resulting in a slightly lower gross margin. Compared to the same quarter one year earlier, revenue was substantially lower, gross profit was lower, cost of revenue was lower, and gross margin was higher.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased from the prior quarter while cost of revenue increased at a faster rate, compressing gross margin. The year-ago comparison shows a much lower cost of revenue relative to revenue, which drove the significant improvement in gross margin.
- Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue grew faster than revenue. Compared to the same quarter one year earlier, gross margin improved substantially, driven by a lower cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.6%
Gross profit
$1.4B
Revenue
$6.3B
Cost of revenue
$20.1B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
+14.1 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, 2024 | $5.9B | $1.7B | $20.2B | 27.9% |
| Jun 30, 2024 | $6.2B | $1.4B | $20.9B | 22.7% |
| Sep 30, 2024 | $6.0B | $1.4B | $18.6B | 22.8% |
| Dec 31, 2024 | $6.3B | $1.4B | $20.1B | 21.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.2 pts
Year-over-year change
Dec 31, 2023
+14.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased from the prior quarter while cost of revenue increased at a faster rate, compressing gross margin. The year-ago comparison shows a much lower cost of revenue relative to revenue, which drove the significant improvement in gross margin.
Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue grew faster than revenue. Compared to the same quarter one year earlier, gross margin improved substantially, driven by a lower cost of revenue relative to revenue.
Monitor the trend in cost of revenue relative to revenue, as its growth rate outpaced revenue in the current quarter versus the prior quarter.