Archer-Daniels-Midland Company (ADM)
Financial leverage ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 35,910,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 22,168,000 | 21,974,000 | 22,148,000 | 23,219,000 | 24,132,000 | 25,228,000 | 24,939,000 | 24,860,000 | 24,284,000 | 23,997,000 | 24,393,000 | 23,722,000 | 22,477,000 | 21,969,000 | 21,582,000 | 20,841,000 | 20,000,000 | 19,322,000 | 19,293,000 | 18,952,000 |
| Financial leverage ratio | 1.62 | 2.38 | 2.38 | 2.36 | 2.26 | 2.18 | 2.23 | 2.37 | 2.46 | 2.43 | 2.53 | 2.73 | 2.50 | 2.38 | 2.36 | 2.47 | 2.49 | 2.32 | 2.30 | 2.55 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $35,910,000K ÷ $22,168,000K
= 1.62
Archer-Daniels-Midland Company's financial leverage ratio has shown fluctuations over the past few years. From March 31, 2020, to December 31, 2020, the ratio increased from 2.55 to 2.49, suggesting a slight decrease in financial leverage. However, there was a subsequent increase to 2.73 by March 31, 2022, indicating a higher level of leverage.
The ratio then decreased to 2.18 by September 30, 2023, before experiencing a slight increase to 2.38 by December 31, 2024. Notably, there was a significant drop to 1.62 by the end of December 31, 2024, which could potentially signify a decrease in the company's reliance on debt to finance its operations or a change in capital structure.
Overall, it is important for stakeholders to closely monitor the financial leverage ratio of Archer-Daniels-Midland Company as it can provide insights into the firm's financial risk, capital structure, and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024