Archer-Daniels-Midland Company (ADM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Archer-Daniels-Midland Company maintains a strong solvency position, as indicated by consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios across the reporting periods from March 31, 2020, to December 31, 2024, all reported at 0.00.
The financial leverage ratio, which measures the extent to which the company relies on debt financing, shows some fluctuation but generally remains at manageable levels over the period analyzed. The ratio ranged between 1.62 and 2.73, with a decreasing trend observed towards the end of the reporting period, possibly indicating a decreasing reliance on debt for financing operations.
Overall, the solvency ratios suggest that Archer-Daniels-Midland Company is in a healthy financial position with minimal debt obligations relative to its assets, capital, and equity. This indicates a lower financial risk and a strong ability to meet its financial obligations in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.07 | 4.23 | 5.42 | 6.49 | 7.44 | 8.54 | 9.43 | 11.49 | 11.89 | 13.14 | 13.41 | 12.66 | 11.88 | 10.40 | 8.38 | 6.71 | 5.30 | 4.44 | 4.72 | 4.21 |
Archer-Daniels-Midland Company's interest coverage ratio has shown a generally positive trend over the years based on the provided data. The ratio has been consistently above 1, indicating that the company has been able to cover its interest expenses with its operating income.
The interest coverage ratio increased steadily from 4.21 as of March 31, 2020, reaching a peak of 13.41 as of June 30, 2022. This upward trend indicates a strengthening ability of the company to meet its interest obligations. However, there was a slight decline in the ratio in the following quarters, dropping to 4.07 as of December 31, 2024, which could suggest a potential decrease in the company's ability to cover interest expenses.
Overall, the interest coverage ratio for Archer-Daniels-Midland Company has shown fluctuations but remained at levels that generally indicate a healthy ability to meet its interest payments. Continued monitoring of this ratio will be important to assess the company's ongoing financial health and ability to service its debt obligations.