Archer-Daniels-Midland Company (ADM)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 19,178,000 | 19,548,000 | 20,262,000 |
| Total current liabilities | US$ in thousands | 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 | 12,020,000 | 12,602,000 | 13,361,000 |
| Working capital turnover | 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 | 8.98 | 9.12 | 9.29 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $93,935,000K ÷ ($29,767,000K – $18,662,000K)
= 8.46
Archer-Daniels-Midland Company's working capital turnover has shown fluctuations over the past 20 quarters. The ratio peaked at 9.29 in the first quarter of 2019 and has since experienced some variability, with the latest figure standing at 8.46 as of December 31, 2023.
A high working capital turnover ratio indicates that the company efficiently utilizes its working capital to generate sales revenue. This efficiency can result from effective inventory and receivables management, which can help reduce costs and improve cash flow. On the other hand, a low ratio may suggest inefficiencies in managing working capital, which could lead to excess inventory or slow collection of receivables.
Overall, monitoring the working capital turnover ratio over time can provide insights into Archer-Daniels-Midland Company's operational efficiency and effectiveness in managing its short-term assets and liabilities.
Peer comparison
Dec 31, 2023