Archer-Daniels-Midland Company (ADM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,368,000 | 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 | 852,000 | 932,000 | 849,000 | 926,000 |
| Short-term investments | US$ in thousands | — | 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 | 4,458,000 | 26,000 | 4,000 | 9,000 |
| 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 |
| Cash ratio | 0.07 | 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 | 0.39 | 0.08 | 0.07 | 0.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,368,000K
+ $—K)
÷ $18,662,000K
= 0.07
The cash ratio of Archer-Daniels-Midland Company has varied over the past five years, with fluctuations observed on a quarterly basis. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.
Looking at the trend, the cash ratio has generally been below 1.0, indicating that the company's cash and cash equivalents may not be sufficient to cover its current liabilities. However, it is important to note that different industries may have different norms for cash ratios.
In the most recent quarter, December 31, 2023, the cash ratio stood at 0.07, which was notably lower compared to the previous quarter. This may suggest a decrease in the company's cash reserves relative to its short-term obligations.
The highest cash ratio observed in the dataset was 0.57 on March 31, 2020, indicating a relatively stronger liquidity position at that time. On the other hand, the lowest ratio of 0.04 was recorded on June 30, 2022, signaling a potential liquidity challenge.
In conclusion, the analysis of Archer-Daniels-Midland Company's cash ratio indicates fluctuations in its liquidity position over the past few years, which may be a point of concern and merit further investigation to understand the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2023