Archer-Daniels-Midland Company (ADM)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 611,000 | 784,000 | 764,000 | 4,845,000 | 5,390,000 | 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 |
| Short-term investments | US$ in thousands | 246,000 | 6,975,000 | 6,975,000 | 7,381,000 | 7,228,000 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.45 | 0.41 | 0.41 | 0.62 | 0.68 | 0.51 | 0.51 | 0.42 | 0.05 | 0.05 | 0.04 | 0.39 | 0.41 | 0.48 | 0.46 | 0.38 | 0.36 | 0.46 | 0.49 | 0.57 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($611,000K
+ $246,000K
+ $—K)
÷ $1,903,000K
= 0.45
The quick ratio of Archer-Daniels-Midland Company shows a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets.
The quick ratio started at 0.57 on March 31, 2020, indicating that the company had $0.57 in liquid assets for every $1 of current liabilities. The ratio then decreased to 0.49 by June 30, 2020, and continued to decline to 0.36 by December 31, 2020. This may suggest potential liquidity challenges or an increase in short-term liabilities relative to liquid assets during this period.
From March 31, 2021, the quick ratio started to improve, reaching 0.68 by December 31, 2023. This indicates that the company had a higher level of liquid assets to cover its current liabilities during these quarters. The ratio remained relatively stable around 0.6 levels from December 31, 2023, to June 30, 2024, suggesting a more stable liquidity position during this period.
However, there was a significant drop in the quick ratio to 0.41 by September 30, 2024, and it remained at this level by December 31, 2024. This decline might indicate either a decrease in liquid assets or an increase in short-term liabilities, potentially impacting the company's short-term liquidity position.
Overall, it is essential for Archer-Daniels-Midland Company to maintain a healthy quick ratio above 1.0 to ensure it can meet its short-term obligations comfortably. Monitoring the quick ratio and understanding the factors driving its fluctuations is crucial for assessing and managing the company's liquidity risk effectively.
Peer comparison
Dec 31, 2024