Archer-Daniels-Midland Company (ADM)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 60,243,000 | 59,337,000 | 59,899,000 |
| Inventory | US$ in thousands | 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 | 8,075,000 | 8,294,000 | 8,946,000 |
| Inventory turnover | 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 | 7.46 | 7.15 | 6.70 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $86,422,000K ÷ $11,957,000K
= 7.23
Archer-Daniels-Midland Company's inventory turnover has shown fluctuations over the past five years. It increased from 6.70 in March 2019 to 7.76 in June 2023, indicating that the company was generating revenue more efficiently from its inventory during this period. The highest inventory turnover was observed in September 2023 at 7.96, suggesting that the company was efficiently managing its inventory levels to support sales.
However, there were periods of lower inventory turnover, such as March 2022 and March 2021, where the ratios were 4.84 and 4.95, respectively. This could imply that the company may have had excess inventory or faced challenges in selling its products during those quarters.
Overall, the trend in inventory turnover for Archer-Daniels-Midland Company has been relatively stable, with some fluctuations reflecting changes in the company's inventory management practices and sales performance. It is essential for the company to continue monitoring and optimizing its inventory turnover to ensure efficient use of resources and maintain healthy financial performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023