Archer-Daniels-Midland Company (ADM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,199,000 | 52,698,000 | 54,831,000 | 54,631,000 | 55,093,000 | 55,499,000 | 58,802,000 | 59,774,000 | 58,304,000 | 61,828,000 | 64,866,000 | 56,136,000 | 52,298,000 | 50,958,000 | 51,478,000 | 49,719,000 | 44,795,000 | 44,341,000 | 48,395,000 | 43,997,000 |
| 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 |
| Financial leverage ratio | 2.38 | 2.38 | 2.36 | 2.55 | 2.18 | 2.23 | 2.37 | 2.65 | 2.43 | 2.53 | 2.73 | 2.53 | 2.38 | 2.36 | 2.47 | 2.49 | 2.32 | 2.30 | 2.55 | 3.19 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,199,000K ÷ $21,974,000K
= 2.38
Archer-Daniels-Midland Company's financial leverage ratio has fluctuated over the past several quarters. The ratio has ranged between 2.18 and 3.19, indicating varying levels of financial leverage during this period. A higher financial leverage ratio suggests a higher level of debt used to finance the company's operations and investments.
The average financial leverage ratio for the company during this period is approximately 2.49. This indicates that, on average, Archer-Daniels-Midland Company uses debt financing to support about 2.49 times the amount of equity in its capital structure.
It is important to note that changes in the financial leverage ratio can reflect shifts in the company's capital structure and risk profile. A rising ratio may indicate an increased reliance on debt, which can magnify returns but also increase financial risk. Conversely, a decreasing ratio may signal a more conservative approach with lower debt dependence.
Overall, monitoring Archer-Daniels-Midland Company's financial leverage ratio over time provides insights into the company's capital structure decisions and risk management strategies.
Peer comparison
Sep 30, 2024