Archer-Daniels-Midland Company (ADM)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 85,530,000 | 93,935,000 | 101,848,000 | 85,249,000 | 64,355,000 |
| Total current assets | US$ in thousands | 27,718,000 | 29,767,000 | 35,410,000 | 31,909,000 | 27,286,000 |
| Total current liabilities | US$ in thousands | 19,938,000 | 18,662,000 | 24,191,000 | 21,948,000 | 18,182,000 |
| Working capital turnover | 10.99 | 8.46 | 9.08 | 8.56 | 7.07 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $85,530,000K ÷ ($27,718,000K – $19,938,000K)
= 10.99
Archer-Daniels-Midland Company's working capital turnover has shown an increasing trend over the years, indicating improved efficiency in managing its working capital. Specifically, the turnover ratios were 7.07 in 2020, 8.56 in 2021, 9.08 in 2022, 8.46 in 2023, and 10.99 in 2024.
This implies that the company generated a significant amount of revenue relative to its working capital investment in 2024 compared to previous years, reflecting a positive sign of operational efficiency and effective utilization of its current assets and liabilities.
The continuous improvement in working capital turnover suggests that the company is managing its inventory, accounts receivable, and accounts payable effectively to support its operations and generate sales. This could also indicate that Archer-Daniels-Midland is maintaining a balance in its short-term assets and liabilities, potentially leading to enhanced liquidity and financial performance.
Peer comparison
Dec 31, 2024