Debt-to-Equity Ratio

Archer-Daniels-Midland Company's current debt-to-equity ratio of 0.47x means the company has $0.47 of debt for every $1 of shareholder equity, a measure of financial leverage.

This ratio exactly matches the sector median of 0.47x, placing ADM at the 50th percentile among Consumer Defensive peers. The metric's trend direction over the last eight quarters is increasing, though the year-over-year change is +0.0% and the quarter-over-quarter change is also +0.0%, indicating the ratio has stabilized at its current level after rising from 0.37x two years ago. A flat ratio at the sector median suggests no immediate change in leverage, but the prior increase from lower levels implies that debt has grown relative to equity, which can amplify downside risk in a downturn. This combination of an average level with a history of rising leverage does not signal extreme danger but does warrant monitoring. The overall CAUTIOUS verdict on ADM is supported, as the ratio's past upward movement and current plateau justify a watchful stance rather than an aggressive one.

Frequently Asked Questions

Closest Sector Peers