Archer-Daniels-Midland Company (ADM)
Payables 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 |
| Payables | US$ in thousands | 4,911,000 | 5,035,000 | 5,599,000 | 6,313,000 | 5,252,000 | 5,079,000 | 6,271,000 | 7,803,000 | 6,543,000 | 5,601,000 | 6,135,000 | 6,388,000 | 4,617,000 | 3,441,000 | 4,011,000 | 4,474,000 | 3,347,000 | 2,897,000 | 3,440,000 | 3,746,000 |
| 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 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $80,850,000K ÷ $4,911,000K
= 16.46
Archer-Daniels-Midland Company's payables turnover has shown a fluctuating trend over the past few quarters. The payables turnover ratio measures how many times a company pays off its accounts payable in a given period. A higher ratio indicates that the company is paying off its suppliers more quickly.
Looking at the data, we see that the payables turnover ratio has ranged from 12.04 to 20.71 over the last two years. The ratio reached its peak of 20.71 in September 2020 and has since exhibited some variability but generally stayed within the 13 to 20 range.
A higher payables turnover ratio can suggest efficient management of accounts payable and good relationships with suppliers. It could mean that Archer-Daniels-Midland Company is able to negotiate favorable payment terms with its suppliers or is efficiently managing its working capital.
However, it is essential to consider industry norms and the company's specific circumstances when interpreting the payables turnover ratio. Further analysis, including comparing this ratio to industry peers and trends over time, would provide a more comprehensive understanding of Archer-Daniels-Midland's payables management efficiency.
Peer comparison
Sep 30, 2024