Archer-Daniels-Midland Company (ADM)
Working capital 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 |
| Total current assets | US$ in thousands | 26,626,000 | 26,962,000 | 29,006,000 | 29,767,000 | 30,522,000 | 30,686,000 | 34,325,000 | 35,410,000 | 34,569,000 | 37,647,000 | 40,453,000 | 31,909,000 | 29,290,000 | 28,504,000 | 29,284,000 | 27,286,000 | 22,766,000 | 22,011,000 | 26,146,000 | 21,347,000 |
| Total current liabilities | US$ in thousands | 19,003,000 | 18,684,000 | 19,730,000 | 18,662,000 | 18,105,000 | 18,788,000 | 22,730,000 | 24,191,000 | 22,936,000 | 25,660,000 | 28,523,000 | 21,948,000 | 18,576,000 | 17,296,000 | 18,512,000 | 18,182,000 | 13,907,000 | 12,809,000 | 17,317,000 | 13,734,000 |
| Working capital turnover | 11.41 | 10.72 | 9.89 | 8.46 | 7.80 | 8.40 | 8.79 | 9.05 | 8.49 | 7.87 | 7.54 | 8.56 | 7.48 | 6.68 | 6.34 | 7.07 | 7.08 | 6.99 | 7.29 | 8.49 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $87,010,000K ÷ ($26,626,000K – $19,003,000K)
= 11.41
The working capital turnover ratio for Archer-Daniels-Midland Company has shown fluctuations over the past few years. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.
From December 2019 to September 2020, the working capital turnover ratio ranged between 6.99 and 7.29, showing relatively stable efficiency in managing working capital during this period. However, from March 2020 to March 2021, the ratio decreased from 7.29 to 6.34, indicating a decline in the efficiency of working capital utilization.
The ratio then started to increase from March 2021 onward, reaching a peak of 11.41 in September 2024. This significant increase in the working capital turnover ratio indicates a notable improvement in the company's ability to generate sales revenue using its working capital efficiently.
Overall, the trend in Archer-Daniels-Midland's working capital turnover ratio suggests that the company has made positive strides in optimizing its working capital management and enhancing its operational efficiency in generating sales revenue.
Peer comparison
Sep 30, 2024