Current Ratio

The current ratio of 1.31x means that Archer-Daniels-Midland has $1.31 in current assets (like cash and inventory) for every $1 of current liabilities due within a year, indicating a healthy short-term liquidity cushion.

This is above the Consumer Defensive sector median of 0.98x, placing the company in the 100th percentile among its peers—the highest level. However, the metric has been decreasing over the last eight quarters, even though the year-over-year change is +0.0% and the quarter-over-quarter change is also +0.0%, meaning the ratio has been flat at 1.31x for the past four quarters but dropped sharply from earlier high levels like 11.20x. The combination of a strong current ratio relative to peers with a flat but previously declining trend implies that liquidity is currently adequate, but the sharp past decline may signal past structural changes (e.g., debt accumulation or asset shifts) that warrant monitoring. This metric supports the overall CAUTIOUS verdict: the high percentile rank suggests no immediate liquidity risk, but the flat trajectory after a steep decline does not provide the upward momentum that would align with a more bullish view.

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