Archer-Daniels-Midland Company (ADM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 784,000 | 764,000 | 830,000 | 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 |
| Short-term investments | US$ in thousands | 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 | 4,458,000 |
| 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 |
| Cash ratio | 0.41 | 0.41 | 0.42 | 0.46 | 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 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($784,000K
+ $6,975,000K)
÷ $19,003,000K
= 0.41
Archer-Daniels-Midland Company's cash ratio has displayed variability over the past few quarters. The cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Based on the data provided, the cash ratio has ranged from 0.04 to 0.57 over the past eight quarters. The ratio was relatively low in the first half of 2022, but it increased steadily in the second half of 2022 and reached a peak of 0.57 in the first quarter of 2020. Subsequently, the cash ratio fluctuated but generally remained above 0.40, indicating a healthy liquidity position.
The most recent data for September 30, 2024, shows a cash ratio of 0.41, which is consistent with the ratios observed in the past few quarters. This suggests that Archer-Daniels-Midland continues to maintain a moderate level of liquidity relative to its current liabilities.
Overall, the company's cash ratio has shown fluctuation but has generally improved over the past few quarters, indicating a potential strengthening of its liquidity position. Monitoring this ratio going forward will be important to assess Archer-Daniels-Midland's ability to meet its short-term financial obligations.
Peer comparison
Sep 30, 2024