Archer-Daniels-Midland Company (ADM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 53,271,000 | 54,631,000 | 59,774,000 | 56,136,000 | 49,719,000 |
| Total stockholders’ equity | US$ in thousands | 22,168,000 | 24,132,000 | 24,284,000 | 22,477,000 | 20,000,000 |
| Financial leverage ratio | 2.40 | 2.26 | 2.46 | 2.50 | 2.49 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $53,271,000K ÷ $22,168,000K
= 2.40
The financial leverage ratio for Archer-Daniels-Midland Company has been relatively stable over the years, fluctuating between 2.26 to 2.50. This ratio indicates that the company relies on a moderate level of debt financing to support its operations and investments. A financial leverage ratio of around 2.50 signifies that for every dollar of equity, the company has approximately $2.50 of debt. The slight decrease in the ratio from 2.50 in 2021 to 2.46 in 2022, and further to 2.26 in 2023, may suggest a reduction in debt relative to equity during those periods. However, the ratio increased to 2.40 in 2024, indicating a potentially higher level of debt in relation to equity that year. Overall, the company's financial leverage appears to be within a reasonable range, indicating a balanced approach to capital structure management.
Peer comparison
Dec 31, 2024