Archer-Daniels-Midland Company (ADM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 611,000 | 1,368,000 | 1,037,000 | 943,000 | 666,000 |
| Short-term investments | US$ in thousands | 246,000 | 7,228,000 | 109,000 | 46,000 | 61,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 19,938,000 | 18,662,000 | 24,191,000 | 21,948,000 | 18,182,000 |
| Quick ratio | 0.04 | 0.46 | 0.05 | 0.05 | 0.04 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($611,000K
+ $246,000K
+ $—K)
÷ $19,938,000K
= 0.04
Based on the provided data, the quick ratio of Archer-Daniels-Midland Company has shown fluctuations over the years. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, was extremely low at 0.04 in both December 31, 2020, and December 31, 2024.
However, there was a slight improvement in the quick ratio in the following years, reaching 0.05 at year-end 2021 and maintaining this level through year-end 2022. This indicates that the company may have slightly improved its liquidity position during these periods.
The most significant change occurred at December 31, 2023, when the quick ratio surged to 0.46. This substantial increase suggests a significant enhancement in the company's ability to cover its short-term liabilities with its quick assets, which are assets that can be converted to cash quickly.
Overall, while the company experienced fluctuations in its quick ratio over the years, the notable improvement in the quick ratio at December 31, 2023, indicates a better liquidity position for Archer-Daniels-Midland Company compared to the other years analyzed.
Peer comparison
Dec 31, 2024