Archer-Daniels-Midland Company (ADM)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 87,010,000 | 88,768,000 | 91,710,000 | 93,935,000 | 96,896,000 | 99,884,000 | 101,978,000 | 101,556,000 | 98,707,000 | 94,364,000 | 90,006,000 | 85,249,000 | 80,137,000 | 74,923,000 | 68,278,000 | 64,355,000 | 62,706,000 | 64,306,000 | 64,322,000 | 64,656,000 |
| Property, plant and equipment | US$ in thousands | 10,828,000 | 10,628,000 | 10,596,000 | 10,508,000 | 10,218,000 | 10,127,000 | 10,071,000 | 9,933,000 | 9,605,000 | 9,680,000 | 9,794,000 | 9,803,000 | 9,848,000 | 9,873,000 | 9,799,000 | 9,779,000 | 9,816,000 | 9,833,000 | 9,883,000 | 10,106,000 |
| Fixed asset turnover | 8.04 | 8.35 | 8.66 | 8.94 | 9.48 | 9.86 | 10.13 | 10.22 | 10.28 | 9.75 | 9.19 | 8.70 | 8.14 | 7.59 | 6.97 | 6.58 | 6.39 | 6.54 | 6.51 | 6.40 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $87,010,000K ÷ $10,828,000K
= 8.04
Archer-Daniels-Midland Company's fixed asset turnover has shown a consistently upward trend over the past few quarters, indicating that the company is generating more revenue relative to its investment in fixed assets. The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate sales.
The company's fixed asset turnover improved from 6.40 in Q4 2019 to 8.66 in Q1 2024, reaching a peak of 10.28 in Q4 2022. This suggests that over the recent quarters, the company has been able to generate more sales for each dollar invested in fixed assets.
Despite some fluctuations, the general trend indicates an efficient utilization of fixed assets. High fixed asset turnover ratios are generally positive as they demonstrate that the company is effectively using its assets to drive revenue. It is important for investors to monitor this ratio over time to assess the company's operational efficiency and asset utilization.
Peer comparison
Sep 30, 2024