Archer-Daniels-Midland Company (ADM)
Debt-to-capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,259,000 | 8,224,000 | 8,244,000 | 7,745,000 | 7,735,000 | 7,671,000 | 8,062,000 | 8,752,000 | 8,011,000 | 8,039,000 | 8,432,000 | 8,437,000 | 7,885,000 | 7,922,000 | 8,632,000 | 8,613,000 | 7,672,000 | 7,631,000 | 7,701,000 | 7,675,000 |
| Total stockholders’ equity | US$ in thousands | 21,432,000 | 25,228,000 | 24,939,000 | 24,860,000 | 22,584,000 | 23,997,000 | 24,393,000 | 23,722,000 | 22,177,000 | 21,969,000 | 21,582,000 | 20,841,000 | 20,000,000 | 19,322,000 | 19,293,000 | 18,952,000 | 13,808,000 | 18,873,000 | 18,955,000 | 18,895,000 |
| Debt-to-capital ratio | 0.28 | 0.25 | 0.25 | 0.24 | 0.26 | 0.24 | 0.25 | 0.27 | 0.27 | 0.27 | 0.28 | 0.29 | 0.28 | 0.29 | 0.31 | 0.31 | 0.36 | 0.29 | 0.29 | 0.29 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,259,000K ÷ ($8,259,000K + $21,432,000K)
= 0.28
Archer-Daniels-Midland Company's debt-to-capital ratio has shown fluctuation over the past few years. The ratio has ranged from 0.24 to 0.36, with the most recent value as of December 31, 2023, standing at 0.28. This indicates that the company financed approximately 28% of its assets using debt, while the remaining 72% was funded by equity.
The trend in the debt-to-capital ratio suggests that the company has been managing its capital structure effectively, keeping the ratio within a relatively stable range. A lower ratio indicates a lower level of debt relative to equity, which can signify lower financial risk and greater financial stability. Conversely, a higher ratio may indicate higher financial risk due to increased reliance on debt financing.
Overall, the debt-to-capital ratio for Archer-Daniels-Midland Company appears to be at a reasonable level, but further analysis in conjunction with other financial metrics would provide a more comprehensive assessment of the company's financial health and leverage position.
Peer comparison
Dec 31, 2023