AGCO Corporation (AGCO)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,061,600 | 14,407,800 | 25,289,800 | 22,269,900 | 18,284,400 |
| Property, plant and equipment | US$ in thousands | 1,812,500 | 1,914,400 | 1,591,200 | 1,464,800 | 1,508,500 |
| Fixed asset turnover | 6.10 | 7.53 | 15.89 | 15.20 | 12.12 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,061,600K ÷ $1,812,500K
= 6.10
The fixed asset turnover of AGCO Corporation has displayed a fluctuating trend over the past five years. In December 2020, the fixed asset turnover stood at 12.12, indicating that the company generated $12.12 in revenue for every dollar invested in fixed assets. The ratio improved significantly in the following years, reaching 15.20 in December 2021, and further increasing to 15.89 by December 2022, suggesting enhanced efficiency in utilizing fixed assets to drive revenue.
However, there was a notable decline in fixed asset turnover in the subsequent years, dropping to 7.53 in December 2023, and further decreasing to 6.10 by December 2024. This diminishing trend may signal challenges in efficiently utilizing fixed assets to generate revenue during these periods, warranting a closer examination of the company's asset management strategies and operational efficiency.
Overall, while AGCO Corporation experienced notable fluctuations in fixed asset turnover over the specified period, indicating varying levels of efficiency in leveraging fixed assets to drive sales, further analysis and comparison with industry benchmarks would be beneficial to assess the company's performance more comprehensively.
Peer comparison
Dec 31, 2024