Archer-Daniels-Midland Company (ADM)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 16.46 | 16.32 | 15.11 | 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 | |
| Number of days of payables | days | 22.17 | 22.37 | 24.15 | 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 |
September 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 16.46
= 22.17
Archer-Daniels-Midland Company's number of days of payables has shown fluctuations over the past few quarters. As of September 30, 2024, the company takes approximately 22.17 days to pay its creditors, which is relatively stable compared to previous periods. This indicates that the company is efficient in managing its payables, as it has been able to maintain a consistent payment cycle.
Looking back over the past several quarters, we observe that the number of days of payables has ranged from a low of 17.62 days to a high of 30.30 days. The peak observed in December 2022 has since decreased, highlighting potential efforts by the company to optimize its payment processes. Furthermore, the downward trend in the number of days of payables from the peak in March 2022 to the current period suggests improved efficiency in managing payables over time.
Overall, the company's ability to maintain a relatively steady number of days of payables signifies a balanced approach to managing its supplier obligations. A consistent and optimized payment cycle can contribute to improved cash flow management and vendor relationships, which are crucial aspects of maintaining financial health and sustainability.
Peer comparison
Sep 30, 2024