Archer-Daniels-Midland Company (ADM)
Quick ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 932,000 | 849,000 | 926,000 |
| Short-term investments | US$ in thousands | — | 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 | 26,000 | 4,000 | 9,000 |
| Receivables | US$ in thousands | 4,232,000 | 4,443,000 | 4,110,000 | 4,471,000 | 4,926,000 | 4,679,000 | 5,336,000 | 4,235,000 | 3,343,000 | 3,797,000 | 3,478,000 | 3,269,000 | 2,829,000 | 2,616,000 | 2,583,000 | 2,437,000 | 2,298,000 | 2,241,000 | 2,433,000 | 2,515,000 |
| Total current liabilities | US$ in thousands | 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 | 12,020,000 | 12,602,000 | 13,361,000 |
| Quick ratio | 0.30 | 0.76 | 0.73 | 0.62 | 0.25 | 0.26 | 0.25 | 0.54 | 0.56 | 0.69 | 0.66 | 0.56 | 0.52 | 0.65 | 0.69 | 0.71 | 0.55 | 0.27 | 0.26 | 0.26 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,368,000K
+ $—K
+ $4,232,000K)
÷ $18,662,000K
= 0.30
The quick ratio of Archer-Daniels-Midland Company has exhibited fluctuations over the periods analyzed. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.
In December 2023, the quick ratio was 0.30, indicating that for every $1 of current liabilities, the company had $0.30 of highly liquid assets to cover them. This ratio was relatively low, suggesting a potential liquidity challenge. However, by September 2023, the quick ratio improved significantly to 0.76, signaling a stronger ability to meet short-term obligations.
Throughout the previous periods, the quick ratio has shown variability, with values ranging from a low of 0.25 to a high of 0.76. Generally, a quick ratio above 1.0 is considered healthy, indicating that a company has more than enough liquid assets to cover its short-term liabilities.
The trend in the quick ratio should be monitored closely to assess Archer-Daniels-Midland Company's liquidity position and ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023