Archer-Daniels-Midland Company (ADM)
Debt-to-equity 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-equity ratio | 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 | 0.40 | 0.41 | 0.41 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,259,000K ÷ $21,432,000K
= 0.39
Archer-Daniels-Midland Company's debt-to-equity ratio has been relatively stable over the past five quarters, ranging from 0.31 to 0.39, indicating a conservative capital structure with a moderate level of debt relative to equity. The ratio hit its lowest point of 0.31 in March 2023 and has remained below 0.40 for most of the quarters, suggesting a lower reliance on debt financing compared to equity.
The trend indicates a consistent effort to maintain a balanced mix of debt and equity in the company's capital structure, which can be seen as a positive sign of financial stability and risk management. It is noteworthy that the ratio has not exceeded 0.45 in the recent quarters, indicating that the company has been effective in managing its debt levels relative to equity.
Overall, based on the historical debt-to-equity ratios, Archer-Daniels-Midland Company appears to have a prudent approach to leverage, maintaining a relatively conservative financial position.
Peer comparison
Dec 31, 2023