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Archer-Daniels Midland Co (NYSE:ADM) Debt-to-EBITDA

: 1.61 (As of Dec. 2022)
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Debt-to-EBITDA measures a company's ability to pay off its debt.

Archer-Daniels Midland Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $1,737 Mil. 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 annualized EBITDA for the quarter that ended in Dec. 2022 was $6,404 Mil. Archer-Daniels Midland Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2022 was 1.61.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Archer-Daniels Midland Co's Debt-to-EBITDA or its related term are showing as below:

ADM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.3   Med: 2.31   Max: 3.46
Current: 1.55

During the past 13 years, the highest Debt-to-EBITDA Ratio of Archer-Daniels Midland Co was 3.46. The lowest was 1.30. And the median was 2.31.

ADM's Debt-to-EBITDA is ranked better than
63.3% of 1335 companies
in the Consumer Packaged Goods industry
Industry Median: 2.45 vs ADM: 1.55

Archer-Daniels Midland Co Debt-to-EBITDA Historical Data

The historical data trend for Archer-Daniels Midland Co's Debt-to-EBITDA 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
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.49 3.31 3.46 2.31 1.55

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
Debt-to-EBITDA 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 1.97 2.18 1.70 1.54 1.61

Competitive Comparison

For the Farm Products subindustry, Archer-Daniels Midland Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.

   

Archer-Daniels Midland Co Debt-to-EBITDA Distribution

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

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



Archer-Daniels Midland Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Archer-Daniels Midland Co's Debt-to-EBITDA for the fiscal year that ended in Dec. 2022 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1737 + 8551) / 6657
=1.55

Archer-Daniels Midland Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2022 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1737 + 8551) / 6404
=1.61

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2022) EBITDA data.


Archer-Daniels Midland Co  (NYSE:ADM) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Archer-Daniels Midland Co Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Archer-Daniels Midland Co's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


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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