Archer-Daniels-Midland Company (ADM)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.89 | 7.59 | 7.93 | 7.33 | 7.29 | 7.99 | 7.78 | 6.40 | 6.38 | 6.87 | 6.03 | 4.84 | 5.47 | 6.67 | 6.07 | 4.95 | 5.11 | 6.67 | 7.87 | 6.81 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 10.12 | 11.42 | 10.72 | 9.89 | 8.46 | 7.83 | 8.42 | 8.82 | 9.08 | 8.49 | 7.87 | 7.54 | 8.56 | 7.48 | 6.68 | 6.34 | 7.07 | 7.08 | 6.99 | 7.29 |
Archer-Daniels-Midland Company's inventory turnover has shown some fluctuations over the years, ranging from a low of 4.84 to a high of 7.99. Generally, a higher inventory turnover indicates that the company is selling its inventory more efficiently.
The receivables turnover and payables turnover ratios are not available in the provided data, which makes it difficult to assess the efficiency of the company in collecting receivables and paying its suppliers.
In terms of working capital turnover, the company's performance has been improving consistently over the years, with the ratio increasing from 7.29 to 10.12. A higher working capital turnover indicates that the company is generating more revenue for each dollar of working capital employed.
Overall, Archer-Daniels-Midland Company's activity ratios reflect a mixed performance, with steady improvement in working capital turnover, while the trends in inventory turnover show some variability. Monitoring these ratios over time can provide insights into the company's operational efficiency and effectiveness in managing its working capital.
Average number of days
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.96 | 48.10 | 46.01 | 49.78 | 50.10 | 45.70 | 46.89 | 57.04 | 57.19 | 53.13 | 60.50 | 75.43 | 66.68 | 54.76 | 60.10 | 73.68 | 71.37 | 54.73 | 46.39 | 53.58 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Archer-Daniels-Midland Company's Days of Inventory on Hand (DOH) ratio has fluctuated over the period analyzed. It ranged from a low of 45.70 days on September 30, 2023, to a high of 75.43 days on March 31, 2022. The DOH ratio indicates the average number of days it takes for the company to sell its inventory, with a lower number generally being more favorable as it suggests efficient inventory management.
The company did not provide data for Days of Sales Outstanding (DSO), which measures how quickly the company collects its accounts receivable. This lack of information makes it challenging to assess the efficiency of the company in collecting its receivables over the period analyzed.
Similarly, the company did not provide data for the Number of Days of Payables, which reflects how long it takes for the company to pay its suppliers. Without this information, it is difficult to evaluate the company's payment practices and liquidity management.
In conclusion, based on the available data provided, Archer-Daniels-Midland Company's inventory management, accounts receivable collection, and payment practices cannot be thoroughly assessed using activity ratios.
Long-term
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 8.56 | 9.89 | 10.15 | 10.25 | 10.28 | 9.75 | 9.19 | 8.62 | 8.14 | 6.86 | 6.97 | 6.47 | 6.39 | 6.54 | 6.51 |
| Total asset turnover | 2.38 | 1.67 | 1.68 | 1.67 | 1.72 | 1.76 | 1.81 | 1.74 | 1.70 | 1.69 | 1.53 | 1.39 | 1.52 | 1.53 | 1.47 | 1.33 | 1.29 | 1.40 | 1.45 | 1.33 |
Archer-Daniels-Midland Company's long-term activity ratios reflect how efficiently the company is utilizing its assets to generate sales.
1. Fixed Asset Turnover: This ratio measures how effectively the company is generating sales from its fixed assets. From March 2020 to June 2022, the fixed asset turnover ratio showed a consistent upward trend, indicating improved efficiency in utilizing fixed assets to generate revenue. From September 2022 to March 2023, there was a peak in the ratio, suggesting a significant increase in sales generated from fixed assets. However, from June 2023 to September 2023, the ratio decreased, possibly indicating a decrease in the efficiency of generating revenue from fixed assets during that period. Notably, data was not available from December 2023 onwards.
2. Total Asset Turnover: This ratio measures the company's ability to generate sales from all its assets. The total asset turnover ratio showed variations over the years. From June 2020 to September 2023, there was an overall increasing trend in the ratio, indicating improved efficiency in utilizing total assets to generate sales. The ratio peaked in December 2024, suggesting a significant increase in sales generated from assets during that period.
Overall, the analysis of Archer-Daniels-Midland Company's long-term activity ratios indicates fluctuations in the efficiency of asset utilization to generate sales over the years. It would be important to monitor these ratios continuously to assess the company's operational performance and asset management strategies.