Quick Ratio

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

Closest Sector Peers