AGCO Corporation (AGCO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,163,900 | 10,939,500 | 9,733,000 | 8,196,600 | 8,348,800 |
| Inventory | US$ in thousands | 3,440,700 | 3,189,700 | 2,593,700 | 1,974,400 | 2,078,700 |
| Inventory turnover | 3.54 | 3.43 | 3.75 | 4.15 | 4.02 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $12,163,900K ÷ $3,440,700K
= 3.54
The inventory turnover ratio for AGCO Corp. has slightly decreased from 3.39 in 2019 to 3.09 in 2023. This indicates that AGCO Corp. has been able to turn over its inventory approximately 3.09 times in 2023, compared to 3.39 times in 2019.
A lower inventory turnover ratio may suggest that the company is holding onto its inventory for a longer period, which could tie up working capital and lead to higher carrying costs. Conversely, a higher inventory turnover ratio would indicate that the company is efficiently managing its inventory and quickly converting it into sales.
Overall, while the inventory turnover ratio has decreased slightly over the years, AGCO Corp. should continue to monitor and evaluate its inventory management practices to ensure optimal efficiency and cost-effectiveness.
Peer comparison
Dec 31, 2023