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Archer-Daniels Midland Co (NYSE:ADM) Long-Term Debt & Capital Lease Obligation

: $8,551 Mil (As of Dec. 2022)
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Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Archer-Daniels Midland Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $8,551 Mil.

Warning Sign:

Archer-Daniels Midland Co has been issuing new debt. Over the past 3 years, it issued USD 44 million of debt. But overall, its debt level is acceptable.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Archer-Daniels Midland Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $8,551 Mil. Archer-Daniels Midland Co's Total Assets for the quarter that ended in Dec. 2022 was $59,774 Mil. Archer-Daniels Midland Co's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2022 was 0.14.

Archer-Daniels Midland Co's LT-Debt-to-Total-Asset declined from Dec. 2021 (0.16) to Dec. 2022 (0.14). It may suggest that Archer-Daniels Midland Co is progressively becoming less dependent on debt to grow their business.


Archer-Daniels Midland Co Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Archer-Daniels Midland Co's Long-Term Debt & Capital Lease Obligation 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
Long-Term Debt & Capital Lease Obligation
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7,698.00 8,453.00 8,748.00 8,776.00 8,551.00

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
Long-Term Debt & Capital Lease Obligation Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8,776.00 9,491.00 8,800.00 8,394.00 8,551.00

Archer-Daniels Midland Co Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.


Archer-Daniels Midland Co  (NYSE:ADM) Long-Term Debt & Capital Lease Obligation Explanation

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

Archer-Daniels Midland Co's LT-Debt-to-Total-Asset ratio for the quarter that ended in Dec. 2022 is calculated as:

LT-Debt-to-Total-Asset (Q: Dec. 2022 )=Long-Term Debt & Capital Lease Obligation (Q: Dec. 2022 )/Total Assets (Q: Dec. 2022 )
=8551/59774
=0.14

* 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.

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the company’s earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet


Archer-Daniels Midland Co Long-Term Debt & Capital Lease Obligation Related Terms

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

Archer-Daniels Midland Co logo
Traded in Other Exchanges
Address
77 West Wacker Drive, Suite 4600, Chicago, IL, USA, 60601
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

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