Archer-Daniels-Midland Company (ADM)
Payables 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 |
| Payables | US$ in thousands | 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 | 2,973,000 | 3,067,000 | 3,538,000 |
| 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 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $86,422,000K ÷ $6,313,000K
= 13.69
Archer-Daniels-Midland Company's payables turnover ratio has shown fluctuations over the past few quarters. The payables turnover ratio measures how efficiently a company pays off its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently, possibly taking advantage of early payment discounts or managing its cash flow effectively.
Looking at the data, we can see that the payables turnover ratio has ranged from a low of 12.04 to a high of 20.71 over the past five quarters. The ratio has generally been trending upwards since March 2020, indicating that the company has been improving its efficiency in paying off its payables.
The highest payables turnover ratio of 20.71 was recorded in June 2020, suggesting that during that period, Archer-Daniels-Midland Company was particularly effective in managing its accounts payable by paying off its suppliers at a faster rate.
Overall, the upward trend in the payables turnover ratio for Archer-Daniels-Midland Company reflects positively on the company's financial management practices and indicates an improvement in its ability to meet its obligations to suppliers in a timely manner.
Peer comparison
Dec 31, 2023