Archer-Daniels-Midland Company (ADM)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 87,010,000 | 88,768,000 | 91,710,000 | 93,935,000 | 96,896,000 | 99,884,000 | 101,978,000 | 101,556,000 | 98,707,000 | 94,364,000 | 90,006,000 | 85,249,000 | 80,137,000 | 74,923,000 | 68,278,000 | 64,355,000 | 62,706,000 | 64,306,000 | 64,322,000 | 64,656,000 |
| Receivables | US$ in thousands | 3,770,000 | 4,382,000 | 4,178,000 | 4,232,000 | 4,443,000 | 4,110,000 | 4,471,000 | 4,926,000 | 4,679,000 | 5,336,000 | 4,235,000 | 3,343,000 | 3,797,000 | 3,478,000 | 3,269,000 | 2,829,000 | 2,616,000 | 2,583,000 | 2,437,000 | 2,298,000 |
| Receivables turnover | 23.08 | 20.26 | 21.95 | 22.20 | 21.81 | 24.30 | 22.81 | 20.62 | 21.10 | 17.68 | 21.25 | 25.50 | 21.11 | 21.54 | 20.89 | 22.75 | 23.97 | 24.90 | 26.39 | 28.14 |
September 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $87,010,000K ÷ $3,770,000K
= 23.08
Archer-Daniels-Midland Company's receivables turnover ratio has shown fluctuation over the past few quarters. The receivables turnover ratio measures how quickly a company collects outstanding receivables from its customers during a specific period.
From Dec 2019 to Sep 2020, the company's receivables turnover ratio increased steadily from 22.75 to 28.14, indicating an improvement in the efficiency of collecting receivables. However, from Sep 2020 to Mar 2022, there was a gradual decline in the ratio, reaching a low of 17.68 in Jun 2022. This suggests a decrease in the company's ability to collect receivables promptly during this period.
The receivables turnover ratio started to recover in the following quarters, showing an upward trend from Mar 2022 to Sep 2023, with fluctuations around the 20-25 range. Particularly noteworthy is the peak in Jun 2023 at 24.30, indicating an improvement in receivables collection efficiency during that period.
In recent quarters, from Dec 2023 to Sep 2024, the receivables turnover ratio has remained relatively stable, ranging from 20.26 to 23.08. This stability suggests that the company has maintained a consistent ability to collect receivables efficiently.
Overall, it is crucial for Archer-Daniels-Midland Company to closely monitor and manage its receivables turnover ratio to ensure the timely collection of outstanding receivables, which impacts the company's liquidity and working capital management.
Peer comparison
Sep 30, 2024