Archer-Daniels Midland Co (WBO:ARDA) Inventory Turnover : 1.81 (As of Dec. 2023)

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What is Archer-Daniels Midland Co Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Archer-Daniels Midland Co's Cost of Goods Sold for the three months ended in Dec. 2023 was €19,475 Mil. Archer-Daniels Midland Co's Average Total Inventories for the quarter that ended in Dec. 2023 was €10,741 Mil. Archer-Daniels Midland Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.81.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Archer-Daniels Midland Co's Days Inventory for the three months ended in Dec. 2023 was 50.32.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Archer-Daniels Midland Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.51.

Archer-Daniels Midland Co Inventory Turnover Historical Data

The historical data trend for Archer-Daniels Midland Co's Inventory Turnover 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.

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Archer-Daniels Midland Co Inventory Turnover Chart

Archer-Daniels Midland Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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6.81

5.51

6.25

6.63

6.36

Archer-Daniels Midland Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															1.67	1.48	1.74	1.73	1.81

Archer-Daniels Midland Co Inventory Turnover Calculation

Archer-Daniels Midland Co's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	79248.974	/ (	(13943.824	+	10964.569)	/	2 )
=	79248.974	/	12454.1965
=	6.36

Archer-Daniels Midland Co's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	19475.246	/ (	(10516.888	+	10964.569)	/	2 )
=	19475.246	/	10740.7285
=	1.81

Archer-Daniels Midland Co (WBO:ARDA) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Archer-Daniels Midland Co's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	10740.7285	/	19475.246	*	365 / 4
	=	50.32

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Archer-Daniels Midland Co's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	10740.7285	/	21070.826
	=	0.51

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Archer-Daniels Midland Co Inventory Turnover Related Terms

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Archer-Daniels Midland Co (WBO:ARDA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Archer-Daniels Midland Co (WBO:ARDA) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

ADM:USA ADM:Mexico 1ADM:Italy ADM:Germany A1DM34:Brazil

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. The company is also one of the largest grain merchandisers through its 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 and is a large producer of corn-based sweeteners, starches, and ethanol.

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