Archer-Daniels-Midland Company (ADM)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 23.08 | 20.26 | 21.95 | 22.20 | 21.81 | 24.30 | 22.81 | 20.62 | 21.10 | 17.68 | 21.25 | 25.50 | 21.11 | 21.54 | 20.89 | 22.75 | 23.97 | 24.90 | 26.39 | 28.14 | |
| DSO | days | 15.81 | 18.02 | 16.63 | 16.44 | 16.74 | 15.02 | 16.00 | 17.70 | 17.30 | 20.64 | 17.17 | 14.31 | 17.29 | 16.94 | 17.48 | 16.05 | 15.23 | 14.66 | 13.83 | 12.97 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 23.08
= 15.81
The Days of Sales Outstanding (DSO) for Archer-Daniels-Midland Company have fluctuated over the past several quarters. DSO is a measure of how long it takes for a company to collect payments from its customers after making sales.
Looking at the trend, DSO has increased from 12.97 days at the end of December 2019 to 18.02 days at the end of June 2024. This suggests that the company is taking longer to collect payments from its customers, which could potentially indicate issues with accounts receivable management or changing payment terms with customers.
There was a notable spike in DSO to 20.64 days at the end of June 2022, but it improved in subsequent quarters before increasing again in the most recent quarter. It is important for the company to closely monitor and manage its accounts receivable to ensure timely collection of payments and maintain healthy cash flow.
Overall, the increasing trend in DSO for Archer-Daniels-Midland Company indicates a potential area of concern that warrants further investigation and proactive management to improve cash flow efficiency.
Peer comparison
Sep 30, 2024