Archer-Daniels-Midland Company (ADM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.40 | 2.26 | 2.46 | 2.50 | 2.49 |
Archer-Daniels-Midland Company's solvency ratios indicate a consistently strong financial position over the years. The Debt-to-assets ratio remained at 0.00 from 2020 to 2024, suggesting that the company has effectively financed its assets without relying heavily on debt.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also remained at 0.00 throughout the period, indicating that the company's capital structure is stable, with a minimal reliance on debt for funding its operations.
The Financial leverage ratio showed a slight fluctuation, ranging from 2.26 to 2.50, but generally remained within a relatively narrow band. This indicates that the company has maintained a conservative level of leverage in its operations, striking a balance between debt and equity financing.
Overall, the solvency ratios of Archer-Daniels-Midland Company reflect a prudent approach to managing its financial obligations and leveraging its capital effectively to support its business activities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.19 | 7.65 | 14.24 | 13.57 | 6.50 |
Archer-Daniels-Midland Company's interest coverage ratio has shown fluctuations over the years. In 2020, the interest coverage ratio was 6.50, indicating that the company generated enough operating income to cover its interest payments 6.5 times.
The ratio improved significantly in 2021 to 13.57, indicating a stronger ability to meet interest obligations. This improvement continued in 2022 with an interest coverage ratio of 14.24, suggesting an even healthier financial position.
However, in 2023, the interest coverage ratio decreased to 7.65, signaling a slight weakening in the company's ability to cover interest expenses. This downward trend continued in 2024 with a ratio of 4.19, which suggests a significant decline in the company's ability to cover interest payments from its operating income.
Overall, while Archer-Daniels-Midland Company has shown fluctuations in its interest coverage ratio over the years, it is essential for the company to closely monitor and manage its interest obligations to ensure financial stability and sustainability.