Archer-Daniels-Midland Company (ADM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 29,767,000 | 35,410,000 | 31,909,000 | 27,286,000 | 21,347,000 |
| Total current liabilities | US$ in thousands | 18,662,000 | 24,191,000 | 21,948,000 | 18,182,000 | 13,734,000 |
| Current ratio | 1.60 | 1.46 | 1.45 | 1.50 | 1.55 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $29,767,000K ÷ $18,662,000K
= 1.60
Archer-Daniels-Midland Company's current ratio has displayed some fluctuations over the past five years. The current ratio is a measure of a company's ability to pay its short-term obligations, with a higher ratio indicating a stronger position.
In 2023, the current ratio improved to 1.60 from 1.46 in 2022, which suggests that the company had a better liquidity position to cover its current liabilities. This increase indicates an improvement in the company's ability to meet its short-term financial obligations using its current assets.
However, it is worth noting that the current ratio was slightly higher in 2020 and 2019 compared to 2023. This indicates that in those years, the company had a relatively stronger ability to cover its short-term liabilities with its current assets.
Overall, the trend of Archer-Daniels-Midland Company's current ratio over the past five years shows some variability, with fluctuations indicating changes in the company's liquidity position. This suggests that the company may have experienced shifts in its working capital management or changes in its current asset and liability composition during these years.
Peer comparison
Dec 31, 2023