AGCO Corporation (AGCO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,407,800 | 25,289,800 | 22,269,900 | 18,284,400 | 18,062,900 |
| Property, plant and equipment | US$ in thousands | 1,914,400 | 1,591,200 | 1,464,800 | 1,508,500 | 1,416,300 |
| Fixed asset turnover | 7.53 | 15.89 | 15.20 | 12.12 | 12.75 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,407,800K ÷ $1,914,400K
= 7.53
Fixed asset turnover is a financial ratio that indicates how efficiently a company generates sales from its fixed assets. AGCO Corp.'s fixed asset turnover has been fluctuating over the past five years. In 2023, the company achieved a fixed asset turnover of 7.50, indicating that for every dollar invested in fixed assets, AGCO Corp. generated $7.50 in sales revenue. This represents a slight decrease from the previous year's ratio of 7.95.
Despite the slight decrease in 2023, AGCO Corp.'s fixed asset turnover has generally been strong and consistently above 6. This suggests that the company has been efficient in utilizing its fixed assets to generate revenue. The highest fixed asset turnover was in 2022 at 7.95, indicating a peak in efficiency during that year.
Overall, AGCO Corp.'s ability to generate sales from its fixed assets has shown positive performance over the years, reflecting strong operational efficiency in utilizing its fixed assets to drive revenue growth. It will be important to monitor future trends in fixed asset turnover to assess the company's ongoing operational efficiency.
Peer comparison
Dec 31, 2023