Archer-Daniels-Midland Company (ADM)
Inventory turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 79,752,000 | 81,537,000 | 82,850,000 | 85,305,000 | 87,109,000 | 89,653,000 | 92,640,000 | 94,517,000 | 94,278,000 | 91,249,000 | 87,391,000 | 83,670,000 | 79,262,000 | 74,448,000 | 69,518,000 | 63,228,000 | 59,902,000 | 58,436,000 | 60,000,000 | 60,152,000 |
| Inventory | US$ in thousands | 11,572,000 | 10,746,000 | 10,443,000 | 11,634,000 | 11,957,000 | 11,224,000 | 11,902,000 | 14,771,000 | 14,771,000 | 13,282,000 | 14,485,000 | 17,290,000 | 14,481,000 | 11,169,000 | 11,446,000 | 12,764,000 | 11,713,000 | 8,762,000 | 7,626,000 | 8,830,000 |
| Inventory turnover | 6.89 | 7.59 | 7.93 | 7.33 | 7.29 | 7.99 | 7.78 | 6.40 | 6.38 | 6.87 | 6.03 | 4.84 | 5.47 | 6.67 | 6.07 | 4.95 | 5.11 | 6.67 | 7.87 | 6.81 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $79,752,000K ÷ $11,572,000K
= 6.89
Archer-Daniels-Midland Company's inventory turnover has shown fluctuating trends over the past few years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced over a specific period.
From March 31, 2020, to June 30, 2020, there was an increase in inventory turnover from 6.81 to 7.87, indicating that the company was selling its inventory at a faster rate during this period. However, there was a slight decrease in inventory turnover to 6.67 by September 30, 2020.
From December 31, 2020, to March 31, 2021, there was a notable drop in inventory turnover from 5.11 to 4.95, suggesting that inventory was not being sold as quickly as before. The trend continued with a further decrease to 4.84 by March 31, 2022, indicating potential issues with managing and selling inventory efficiently.
The company saw improved inventory turnover by June 30, 2022, reaching 6.03, and further improvement by September 30, 2022, at 6.87. This suggests that Archer-Daniels-Midland Company took measures to enhance its inventory management processes during this period.
Subsequently, the inventory turnover ratio remained relatively stable, ranging between 6.40 and 7.99 from March 31, 2023, to September 30, 2024. These values indicate that the company's inventory turnover has stabilized, showing consistency in managing inventory levels and sales.
Overall, it is crucial for Archer-Daniels-Midland Company to strive for a balance in its inventory turnover ratio to ensure optimal inventory management and maximize operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024