Archer-Daniels-Midland Company (ADM)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 64,274,000 | 63,348,000 | 64,119,000 |
| Property, plant and equipment | US$ in thousands | 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 | 10,101,000 | 10,245,000 | 10,299,000 |
| Fixed asset turnover | 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 | 6.36 | 6.18 | 6.23 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $93,935,000K ÷ $10,508,000K
= 8.94
Archer-Daniels-Midland Company's fixed asset turnover has shown a fluctuating trend over the past few years, ranging from a low of 6.18 to a high of 10.28. The fixed asset turnover measures the company's ability to generate sales from its investment in fixed assets. A higher ratio indicates that the company is more efficient in utilizing its fixed assets to generate revenue.
The trend in fixed asset turnover for Archer-Daniels-Midland shows an overall increasing pattern since 2020, with some variations on a quarterly basis. This suggests that the company has been improving its efficiency in generating sales from its fixed asset base.
From the data provided, we can observe that the fixed asset turnover ratio has generally been on an upward trajectory, signaling that Archer-Daniels-Midland has been making effective use of its fixed assets to drive sales growth. Overall, the increasing trend in fixed asset turnover indicates improving efficiency in the company's utilization of its fixed assets to generate revenue. However, it is important to conduct a more in-depth analysis alongside other financial metrics to gain a holistic understanding of the company's operational performance.
Peer comparison
Dec 31, 2023