Archer-Daniels-Midland Company (ADM)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 13.69 | 17.01 | 18.18 | 15.03 | 12.04 | 13.95 | 15.60 | 13.64 | 12.41 | 16.12 | 20.20 | 15.76 | 13.39 | 17.46 | 20.71 | 17.49 | 16.15 | 20.26 | 19.35 | 16.93 | |
| Number of days of payables | days | 26.66 | 21.45 | 20.07 | 24.29 | 30.30 | 26.17 | 23.39 | 26.76 | 29.42 | 22.64 | 18.07 | 23.15 | 27.26 | 20.91 | 17.62 | 20.87 | 22.60 | 18.01 | 18.87 | 21.56 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 13.69
= 26.66
The analysis of Archer-Daniels-Midland Company's number of days of payables over the past several quarters reveals fluctuations in the time it takes for the company to pay its suppliers. The number of days of payables has ranged from a low of 17.62 days to a high of 30.30 days over the periods analyzed.
On average, the company takes approximately 23 days to settle its payables. A decreasing trend can be observed in recent quarters, indicating that the company may be managing its payables more efficiently. It is important to note that a lower number of days of payables may indicate improved liquidity or negotiation leverage with suppliers, while a higher number may suggest a strain on cash flow or delays in payments.
Overall, monitoring the number of days of payables can provide insights into a company's working capital management and financial health by gauging how efficiently it manages its trade credit obligations.
Peer comparison
Dec 31, 2023