Archer-Daniels-Midland Company (ADM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 611,000 | 784,000 | 764,000 | 4,845,000 | 5,390,000 | 1,498,000 | 1,426,000 | 899,000 | 1,037,000 | 1,099,000 | 906,000 | 1,079,000 | 943,000 | 1,083,000 | 869,000 | 694,000 | 666,000 | 948,000 | 1,203,000 | 4,734,000 |
| Short-term investments | US$ in thousands | 246,000 | 6,975,000 | 6,975,000 | 7,381,000 | 7,228,000 | 7,739,000 | 8,167,000 | 8,736,000 | 109,000 | 105,000 | 95,000 | 10,132,000 | 8,016,000 | 7,891,000 | 7,114,000 | 6,403,000 | 5,890,000 | 5,484,000 | 5,045,000 | 5,098,000 |
| 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 |
| Cash ratio | 0.45 | 0.41 | 0.41 | 0.62 | 0.68 | 0.51 | 0.51 | 0.42 | 0.05 | 0.05 | 0.04 | 0.39 | 0.41 | 0.48 | 0.46 | 0.38 | 0.36 | 0.46 | 0.49 | 0.57 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($611,000K
+ $246,000K)
÷ $1,903,000K
= 0.45
Archer-Daniels-Midland Company's cash ratio has been fluctuating over the past few years. The cash ratio, which measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents, ranged from a low of 0.04 on June 30, 2022, to a high of 0.68 on December 31, 2023.
The company experienced a significant decline in its cash ratio in mid-2022, which may indicate challenges in managing its short-term liquidity during that period. However, the ratio improved in subsequent quarters, reaching a peak in December 2023.
Overall, the cash ratio of Archer-Daniels-Midland Company has shown some variability, with certain quarters showing stronger liquidity positions than others. It is essential for the company to ensure it maintains a healthy cash ratio to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024