Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

fec5c31a377920c19c21ae4e17cddd1edf7a0f12737b4b8d849321f48baf12f6

23827cdd1288af318b3b00df390021bba2846ef8843a1641c4c9ee5855e6612b

United States

Switzerland

Cayman Islands

Brazil

Mexico

Germany

Other Foreign

Canada

United Kingdom

Total Revenue

c7f15453286880fa17985c6695552cfa0d4870cc43cfab15ff65ea1f4e7cc04a

Oilseeds Processed Volumes (thousand metric tons)

Corn Processed Volumes (thousand metric tons)

Total Processed Volumes (thousand metric tons)

e8d519179134a17586ae51c6a5ac1345c0ff1e8f6217452591f9c6c50d5222f3

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

064540dbf1fb8dc2914f30103e5a5956266e5e740da86fbcb710d18cb93f116a

9ca34b488dd0d29ad50820375b6f417e368fdb07604ac151f9b75c3cb86f3e3d

72b278f33996869049d82d1e0e10280b8270403200cdee26796e954f08c72cff

a7638c7f7e957066c7dbcdac0d250506249ed1b27c7c940dc6a2cb46d683aec0

ADM’s Q1 2024 operating cash flow of **$700 million** was influenced by several working capital factors that, while improving from the prior year, still resulted in a lower overall figure compared to recent quarters. In detail, **changes in operating assets and liabilities** were less negative, **trade payables** held a smaller decline, and although **inventories** decreased more (a positive factor), the **segregated investments** used cash less aggressively – all of which contributed to the net operating cash flow. These adjustments, combined with a smaller positive contribution from **trade receivables**, led to a modest inflow that many analysts might view as low relative to, for example, the **$2,569 million** seen in Q4 2023.  **[0000007084-24-000017_adm-20240331.htm:42]** **[0000007084-24-000017_adm-20240331.htm:4]** 

Why was Operating Cash Flow so low in Q1 2024?

The documents offer two sets of numbers for Q2 2024 that create some confusion. One document states that ADM’s net operating cash flow for Q2 2024 was **468 million USD**.  **[0000007084-24-000026_adm-20240630.htm:4]**  However, another document describes Q2 2024’s operating cash flow as **1,168 million USD**—an improvement of **269 million USD** over Q2 2023—and explains that this change was driven by factors such as:

- A **smaller decrease in inventories** (a drop of **1,443 million USD** in Q2 2024 compared to **2,917 million USD** in Q2 2023)  
- A **lesser reduction in trade payables** (a decrease of **1,257 million USD** in Q2 2024 versus **2,762 million USD** in Q2 2023)  
- A **smaller decline in payables to brokerage customers** (a drop of **390 million USD** in Q2 2024 compared to **1,213 million USD** in Q2 2023)  
- A modest increase in **depreciation and amortization** (from **521 million USD** in Q2 2023 to **566 million USD** in Q2 2024)  

These factors are mentioned as driving the differences compared to Q2 2023.  **[0000007084-24-000026_adm-20240630.htm:51]** **[0000007084-24-000024_adm-ex991_2024630xq2.htm:9]** 

Since one reference reports **468 million USD** and the other **1,168 million USD** for Q2 2024—and neither set of documents directly explains why one set of operating cash flow numbers is significantly lower than another—we cannot provide a definitive answer for why operating cash flow was significantly lower in Q2 2024 based solely on the provided documents. Additional context or clarification on the reported figures would be needed to reconcile these differences.

Why was Operating Cash Flow significantly lower in Q2 2024?

The drastic drop in **Net Earnings in Q3 2024** was driven by several factors. **ADM** recorded a **$461 million non-cash charge** related to a reduction in the carrying value of its Wilmar equity investment, reflecting that the decline in valuation was deemed "other than temporary".  **[0000007084-24-000031_adm-ex991_2024930xq3xv1.htm:0]** **[0000007084-24-000056_adm-ex991_2024930xq3.htm:0]**  Additionally, the company experienced **weaker operating results** in its Ag Services and Oilseeds and Nutrition segments, underperforming due to softer-than-expected market conditions and regulatory uncertainties.  **[ADM_3410619_1]** **[0000007084-24-000031_adm-ex991_2024930xq3xv1.htm:0]**  The impact was further compounded by **increased asset impairment, exit, and restructuring costs of $507 million** (significantly higher than the $79 million reported in Q3 2023).  **[0000007084-24-000054_adm-20240930.htm:2]** **[0000007084-24-000056_adm-ex991_2024930xq3.htm:10]**  Lastly, **a downturn in global commodity markets**, with stronger supply and slower demand recovery in key markets like China, also contributed to the decline.  **[ADM_3410619_1]** 

What factors contributed to the drastic drop in Net Earnings in Q3 2024?

The sharp increase in Asset Impairment Charges in Q3 2024 was primarily driven by a **$461 million impairment charge** related to ADM's investment in Wilmar within its Ag Services and Oilseeds segment, and an additional **$43 million impairment charge** for discontinued animal nutrition trademarks in the Nutrition segment.  **[0000007084-24-000054_adm-20240930.htm:31]** 

What led to the sharp increase in Asset Impairment Charges in Q3 2024?

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In Q1 2024, cash dropped sharply because ADM experienced significant outflows mainly from **investing** and **financing activities**. The company spent **$915 million** acquiring net assets and **$328 million** on property, plant, and equipment, resulting in a net cash outflow of **$1,230 million** from investing activities. Additionally, **financing activities** contributed further to the drop through **$1,327 million** in share repurchases and **$257 million** in dividends, although these were partially offset by **$1,619 million** of net borrowings. Even with a **$700 million** improvement from operating activities and a modest impact from exchange rate fluctuations (**$13 million** reduction), the overall effect was a net decrease of **$545 million** in cash and cash equivalents.  **[0000007084-24-000015_adm-ex991_2024331xq1.htm:7]** 

Why did cash drop so sharply in Q1 2024?

In **Q1 2024**, the surge in ADM's short-term debt was primarily caused by **net borrowings under lines of credit**, which totaled **$1,619 million** for the quarter.  **[0000007084-24-000017_adm-20240331.htm:3]** **[0000007084-24-000015_adm-ex991_2024331xq1.htm:7]** 

What caused the surge in short-term debt in Q1 2024?

The documents indicate that **long-term debt decreased** from **$8,259 million in Q4 2023** to **$7,578 million in Q3 2024**.  **[0000007084-24-000054_adm-20240930.htm:3]**  However, they do not provide specific reasons for this reduction. Potential factors mentioned include debt repayments, refinancing activities, or changes in financing strategies, but these are not explicitly detailed in the documents.  **[0000007084-24-000054_adm-20240930.htm:3]** 

Why is long-term debt considerably lower in Q3 2024?

The decline in ADM’s total assets in Q2 2024 was primarily driven by a **significant reduction in inventories** (a drop of **$1,514 million**), a **substantial decrease in cash and cash equivalents** (reducing by **$604 million**), and a **decline in other current assets** (a reduction of **$584 million**). These decreases collectively led to an overall drop of **$1,933 million** in total assets, even though this was partly offset by an **increase in goodwill and intangible assets** of **$629 million**.  **[0000007084-24-000026_adm-20240630.htm:3]** 

What factors led to the decline in total assets in Q2 2024?

The decline in shareholders' equity in Q3 2024 was mainly due to a combination of factors. While ADM reported **net earnings of $1,233 million**, this gain was more than offset by **cash dividends of $744 million** and significant **share repurchases totaling $2,348 million**. Additionally, there was a negative impact from **other comprehensive income, which worsened from a loss of $(2,487) million to $(2,840) million**, along with further contributions from **stock compensation expense of $74 million** and **other adjustments of $18 million**.  **[0000007084-24-000054_adm-20240930.htm:5]** 

Why did shareholders' equity fall so markedly in Q3 2024?

8b79455bbcc1b60032d98ed1f1e005c05903407ba287603fc2b3abe958e92c18

Archer-Daniels-Midland Co (ADM)

Financials