Archer-Daniels-Midland Company (ADM)
Debt-to-equity ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,578,000 | 8,247,000 | 8,245,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 21,974,000 | 22,148,000 | 23,219,000 | 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 |
| Debt-to-equity ratio | 0.34 | 0.37 | 0.36 | 0.39 | 0.33 | 0.33 | 0.31 | 0.34 | 0.32 | 0.33 | 0.37 | 0.36 | 0.37 | 0.39 | 0.40 | 0.39 | 0.41 | 0.45 | 0.45 | 0.56 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,578,000K ÷ $21,974,000K
= 0.34
Archer-Daniels-Midland Company's debt-to-equity ratio has shown fluctuations over the past few quarters, ranging from 0.31 to 0.56. The ratio indicates the proportion of debt to equity used to finance the company's operations. A lower ratio suggests a conservative financial structure with less reliance on debt, while a higher ratio may indicate higher financial risk.
In the most recent quarter as of September 30, 2024, the debt-to-equity ratio stood at 0.34, a slight decrease from the previous quarter. This implies that the company is using 0.34 units of debt for every unit of equity, showcasing a relatively stable financial leverage position.
Overall, monitoring the trend of this ratio can provide insights into the company's financial health, risk tolerance, and capital allocation strategies. It is essential for stakeholders to assess the company's ability to meet its financial obligations and sustain long-term growth while maintaining an optimal debt-to-equity ratio.
Peer comparison
Sep 30, 2024