Archer-Daniels-Midland Company (ADM)
Days of sales outstanding (DSO)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 28.68 | 26.04 | 25.49 | |
| DSO | days | 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 | 12.73 | 14.02 | 14.32 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 22.20
= 16.44
Archer-Daniels-Midland Company's Days Sales Outstanding (DSO) is a metric used to measure the average number of days it takes for the company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting revenue more quickly, which is favorable as it means faster conversion of sales into cash.
Analyzing the historical trend of Archer-Daniels-Midland Company's DSO reveals fluctuations over the past few years. In the most recent period, as of December 31, 2023, the DSO stood at 16.44 days, showing a slight decrease compared to the previous quarter. This suggests that the company's accounts receivable turnover may have improved, leading to quicker collection of sales.
Looking further back, the DSO has shown some variation, with peaks observed in June 2022 and December 2019 at 20.64 days and 17.70 days, respectively. These higher DSO figures could indicate challenges in collecting receivables efficiently during those periods.
On the other hand, the lowest DSO was recorded in March 2020 at 12.97 days, indicating a more efficient cash conversion cycle at that time.
Overall, while the DSO for Archer-Daniels-Midland Company has experienced fluctuations, monitoring this metric and aiming for a lower DSO over time can help enhance the company's cash flow management and working capital efficiency.
Peer comparison
Dec 31, 2023