Archer-Daniels Midland Co (NYSE:ADM) Cash Conversion Cycle

: 47.40 (As of Dec. 2022)

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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Archer-Daniels Midland Co's Days Sales Outstanding for the three months ended in Dec. 2022 was 21.53.
Archer-Daniels Midland Co's Days Inventory for the three months ended in Dec. 2022 was 52.94.
Archer-Daniels Midland Co's Days Payable for the three months ended in Dec. 2022 was 27.07.
Therefore, Archer-Daniels Midland Co's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2022 was 47.40.

Archer-Daniels Midland Co Cash Conversion Cycle Historical Data

The historical data trend for Archer-Daniels Midland Co's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Archer-Daniels Midland Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Cash Conversion Cycle

46.48

49.08

58.24

52.73

48.51

Archer-Daniels Midland Co Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Cash Conversion Cycle																49.66	60.17	57.66	55.21	47.40

Competitive Comparison

For the Farm Products subindustry, Archer-Daniels Midland Co's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Archer-Daniels Midland Co Cash Conversion Cycle Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Archer-Daniels Midland Co's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Archer-Daniels Midland Co's Cash Conversion Cycle falls in comparison to its industry or sector. The grey bar indicates the Cash Conversion Cycle's extreme value range as defined by GuruFocus.

Archer-Daniels Midland Co Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Archer-Daniels Midland Co's Cash Conversion Cycle for the fiscal year that ended in Dec. 2022 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	19.27	+	56.8	-	27.56
	=	48.51

Archer-Daniels Midland Co's Cash Conversion Cycle for the quarter that ended in Dec. 2022 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	21.53	+	52.94	-	27.07
	=	47.40

Archer-Daniels Midland Co (NYSE:ADM) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.

Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.

Archer-Daniels Midland Co Cash Conversion Cycle Related Terms

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Archer-Daniels Midland Co (NYSE:ADM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Archer-Daniels Midland Co (NYSE:ADM) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

ADM:Mexico ADM:Germany A1DM34:Brazil ARDA:Austria

Address

77 West Wacker Drive, Suite 4600, Chicago, IL, USA, 60601

Website

https://www.adm.com

Archer-Daniels Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. Additionally, the company owns an extensive network of logistical assets to store and transport crops around the globe. ADM also runs a nutrition business that focuses on both human and animal ingredients. The company is also a large producer of corn-based sweeteners, starches, and ethanol.

Executives

Collins James C. Jr.	director	1007 MARKET STREET, D-9058, WILMINGTON DE 19898
Theodore Iii Colbert	director	C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, CHICAGO IL 60606-1596
Strader Fruit Molly L	officer: Vice Pres., Corp. Controller	77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Jennifer L Weber	officer: Senior Vice President	1000 LOWES BOULEVARD, MOORESVILLE NC 28117
Lei Zhang Schlitz	director	5757 N. GREENBAY AVENUE, GLENDALE WI 53129
Michael S Burke	director	C/O AECOM TECHNOLOGY CORPORATION, 555 S. FLOWER STREET, SUITE 3700, LOS ANGELES CA 90071
Stefano Rettore	officer: Senior Vice President	77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Suzan F. Harrison	director	77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Debra A. Sandler	director	KEURIG DR PEPPER INC., 53 SOUTH AVE., BURLINGTON MA 01803
Vincent F Macciocchi	officer: Senior Vice President	77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Christopher M Cuddy	officer: President-Corn	77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Gregory A Morris	officer: Senior Vice President	77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Francisco J Sanchez	director	77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Benjamin I Bard	officer: Vice President	4666 FARIES PARKWAY, DECATUR IL 62526
D Cameron Findlay	officer: Senior Vice President	77 W. WACKER DR., SUITE 2600, CHICAGO IL 60601