Archer-Daniels-Midland Company (ADM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 27,718,000 | 29,767,000 | 35,410,000 | 31,909,000 | 27,286,000 |
| Total current liabilities | US$ in thousands | 19,938,000 | 18,662,000 | 24,191,000 | 21,948,000 | 18,182,000 |
| Current ratio | 1.39 | 1.60 | 1.46 | 1.45 | 1.50 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $27,718,000K ÷ $19,938,000K
= 1.39
Archer-Daniels-Midland Company's current ratio has fluctuated over the past five years. The company had a current ratio of 1.50 as of December 31, 2020, which decreased slightly to 1.45 by December 31, 2021. However, it improved to 1.46 by December 31, 2022, before reaching its highest point of 1.60 by December 31, 2023. Subsequently, the current ratio decreased to 1.39 by December 31, 2024.
Overall, the company's current ratio indicates its ability to cover its short-term obligations with its current assets. A current ratio above 1 suggests that the company has more current assets than current liabilities, which is generally seen as a positive indicator of liquidity. However, the fluctuations in the current ratio over the years may indicate changes in the company's liquidity position and its ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2024