Archer-Daniels-Midland Company (ADM)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 80,850,000 | 82,163,000 | 84,618,000 | 86,422,000 | 89,361,000 | 92,348,000 | 94,225,000 | 93,986,000 | 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 | 60,509,000 |
| Inventory | US$ in thousands | 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 | 9,170,000 |
| Inventory turnover | 7.52 | 7.87 | 7.27 | 7.23 | 7.96 | 7.76 | 6.38 | 6.36 | 6.87 | 6.03 | 4.84 | 5.47 | 6.67 | 6.07 | 4.95 | 5.11 | 6.67 | 7.87 | 6.81 | 6.60 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $80,850,000K ÷ $10,746,000K
= 7.52
Archer-Daniels-Midland Company's inventory turnover ratio has fluctuated over the past 5 years, ranging from a low of 4.84 to a high of 7.96. The company's inventory turnover has generally remained above 6, indicating efficient management of inventory levels. A higher inventory turnover ratio suggests that the company is selling its inventory more frequently within a period, which is favorable as it reduces the risk of inventory obsolescence and holding costs.
The dip in inventory turnover in the first quarter of 2022 may indicate a temporary slowdown in sales compared to the previous quarters. However, the ratio recovered in the following quarters, indicating improved sales efficiency. Overall, the trend of inventory turnover for Archer-Daniels-Midland Company shows a healthy balance between stocking an adequate level of inventory and selling products in a timely manner.
Peer comparison
Sep 30, 2024
Sep 30, 2024