Archer-Daniels-Midland Company (ADM)
Working capital turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 85,530,000 | 87,018,000 | 88,776,000 | 91,718,000 | 93,943,000 | 97,188,000 | 100,176,000 | 102,270,000 | 101,848,000 | 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 |
| Total current assets | US$ in thousands | 10,358,000 | 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 |
| Total current liabilities | US$ in thousands | 1,903,000 | 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 |
| Working capital turnover | 10.12 | 11.42 | 10.72 | 9.89 | 8.46 | 7.83 | 8.42 | 8.82 | 9.08 | 8.49 | 7.87 | 7.54 | 8.56 | 7.48 | 6.68 | 6.34 | 7.07 | 7.08 | 6.99 | 7.29 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $85,530,000K ÷ ($10,358,000K – $1,903,000K)
= 10.12
Archer-Daniels-Midland Company's working capital turnover has shown fluctuations over the reported periods. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. A higher turnover ratio indicates that the company is effectively managing its working capital.
From March 31, 2020, to December 31, 2024, the working capital turnover ranged between 6.34 and 11.42. The ratio increased consistently from March 31, 2020, to December 31, 2024, with minor fluctuations. The ratio peaked at 11.42 on September 30, 2024, indicating a significant improvement in the utilization of working capital to generate sales.
Overall, the increasing trend in the working capital turnover ratio suggests that Archer-Daniels-Midland Company has become more efficient in deploying its working capital for revenue generation. This could be attributed to improved management of inventory, receivables, and payables, leading to enhanced operational performance and financial health.
Peer comparison
Dec 31, 2024