Archer-Daniels-Midland Company (ADM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 93,935,000 | 101,556,000 | 85,249,000 | 64,355,000 | 64,656,000 |
| Receivables | US$ in thousands | 4,232,000 | 4,926,000 | 3,343,000 | 2,829,000 | 2,298,000 |
| Receivables turnover | 22.20 | 20.62 | 25.50 | 22.75 | 28.14 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $93,935,000K ÷ $4,232,000K
= 22.20
Archer-Daniels-Midland Company's receivables turnover ratio has displayed fluctuations over the past five years. The trend shows a general decrease from 2019 to 2020, followed by an increase in 2021, a slight decrease in 2022, and another increase in 2023.
The average receivables turnover ratio over this period is 23.64, indicating that, on average, the company collects its accounts receivable approximately 23.64 times in a year. A higher receivables turnover ratio generally suggests that the company is efficient in collecting its outstanding receivables.
The year 2021 stood out with a higher than average receivables turnover ratio of 25.50, indicating a more efficient collection of receivables compared to the other years. Conversely, 2022 showed a slightly lower ratio of 20.62, which may suggest a slowdown in receivables collection efficiency.
Overall, the receivables turnover ratio for Archer-Daniels-Midland Company has been relatively stable, with some fluctuations in different years. It is important to monitor this ratio over time to ensure efficient management of accounts receivable and cash flow.
Peer comparison
Dec 31, 2023