Archer-Daniels-Midland Company (ADM)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 64,274,000 | 63,348,000 | 64,119,000 |
| Receivables | US$ in thousands | 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 | 2,241,000 | 2,433,000 | 2,515,000 |
| Receivables turnover | 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 | 28.68 | 26.04 | 25.49 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $93,935,000K ÷ $4,232,000K
= 22.20
Archer-Daniels-Midland Company's receivables turnover has varied over the past five years, indicating changes in the efficiency of the company in collecting outstanding receivables. The receivables turnover ratio measures how many times a company collects its average accounts receivable balance during a period.
From March 2019 to December 2023, the trend in the receivables turnover ratio has been generally increasing, with fluctuations seen in some periods. The highest turnover ratio of 28.68 was achieved in December 2018, indicating that the company was collecting its receivables 28.68 times during that period. This suggests strong efficiency in collecting outstanding balances.
Conversely, the lowest turnover ratio of 17.68 was observed in June 2022. A lower ratio indicates a longer collection period for receivables, which could potentially impact cash flows and working capital management. It is essential for the company to closely monitor and manage its accounts receivable collection process during periods of lower turnover to ensure it does not impact liquidity.
Overall, the increasing trend in receivables turnover is a positive sign as it demonstrates the company's improved ability to collect receivables more efficiently in recent periods. However, any deviations from the upward trend should be carefully analyzed to understand the factors influencing the collection of receivables and ensure effective management of working capital.
Peer comparison
Dec 31, 2023