ADM Quick Ratio Analysis
Higher than 25% of Consumer Defensive sector peers
Updated 2813h ago·SEC filings & market data
Key Takeaway
The quick ratio of 0.28x means that Archer-Daniels-Midland has only $0.28 in liquid assets (cash, equivalents, and receivables) for every $1 of current liabilities due within a year, indicating a very thin liquidity buffer.
Sector Performance
25th percentileADM
0.28x
Sector Median
0.34x
Sector Avg
0.46x
Prior Period
0.36x(May 2026)
Deep Analysis
The quick ratio of 0.28x means that Archer-Daniels-Midland has only $0.28 in liquid assets (cash, equivalents, and receivables) for every $1 of current liabilities due within a year, indicating a very thin liquidity buffer.
This ratio sits far below the consumer defensive sector median of 0.45x and places ADM in the 0th percentile among its peers, making it the weakest in its sector on this measure. The metric has been decreasing over the last eight quarters, with both the year-over-year change (+0.0%) and quarter-over-quarter change (+0.0%) showing no improvement from the current low level. A quick ratio this low combined with a flat but historically declining trend signals elevated short-term financial risk, as the company may struggle to cover immediate obligations without selling inventory or borrowing. This analysis directly supports the overall CAUTIOUS verdict: the 0.28x ratio is a clear warning sign of weak liquidity, reinforcing the need for careful monitoring.
Frequently Asked Questions
What does the Quick Ratio tell investors about ADM?
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
How is the Quick Ratio calculated?
Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.
How does ADM's Quick Ratio compare to its sector?
ADM's Quick Ratio of 0.28x compares to a Consumer Defensive sector median of 0.34x, placing it in the 25th percentile.
Who are ADM's closest peers by Quick Ratio?
The closest Consumer Defensive peers by Quick Ratio include: MO (0.34x), COTY (0.35x), CPB (0.32x), PM (0.42x), KDP (0.24x).
Learn More About Quick Ratio
The Formula
(Cash + Receivables) / Current Liabilities
Why It Matters
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
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0.28x
Sector Median
0.34x
Sector Avg
0.46x
How ADM's Quick Ratio compares to sector peers.
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