Archer-Daniels-Midland Company (ADM)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 10,358,000 | 26,626,000 | 26,962,000 | 29,006,000 | 29,767,000 | 30,522,000 | 30,686,000 | 34,325,000 | 35,410,000 | 34,569,000 | 37,647,000 | 40,453,000 | 31,909,000 | 29,290,000 | 28,504,000 | 29,284,000 | 27,286,000 | 22,766,000 | 22,011,000 | 26,146,000 |
| 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 |
| Current ratio | 5.44 | 1.40 | 1.44 | 1.47 | 1.60 | 1.69 | 1.63 | 1.51 | 1.46 | 1.51 | 1.47 | 1.42 | 1.45 | 1.58 | 1.65 | 1.58 | 1.50 | 1.64 | 1.72 | 1.51 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $10,358,000K ÷ $1,903,000K
= 5.44
Archer-Daniels-Midland Company's current ratio has shown fluctuation over the past few years, ranging from a low of 1.40 in September 2024 to a high of 5.44 in December 2024. The current ratio measures the company's ability to cover its short-term obligations with its current assets.
The current ratio has generally remained above 1, indicating that the company has had sufficient current assets to cover its current liabilities. However, a current ratio of 5.44 in December 2024 raises some questions about the accuracy of the data or the company's financial position, as a ratio significantly above 1 may indicate an issue with data recording or exceptional circumstances affecting the company's liquidity.
Overall, the trend in Archer-Daniels-Midland Company's current ratio suggests that the company has maintained a relatively healthy liquidity position during the period under review, with the ratio fluctuating around the 1.5 to 1.7 range for most of the years. It would be prudent for stakeholders to further investigate the significant spike in the current ratio to 5.44 in December 2024 to understand the underlying reasons and implications for the company's financial health.
Peer comparison
Dec 31, 2024