AGCO Corporation (AGCO)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 12,163,900 | 12,202,700 | 11,998,300 | 11,384,800 | 10,939,500 | 10,422,000 | 10,116,100 | 10,025,200 | 9,733,000 | 9,387,100 | 9,192,800 | 8,543,000 | 8,197,600 | 5,763,200 | 5,499,000 | 5,802,700 | 5,878,800 | 8,223,900 | 8,320,700 | 8,458,700 |
| Inventory | US$ in thousands | 3,440,700 | 3,726,000 | 3,829,900 | 3,642,800 | 3,189,700 | 3,324,700 | 3,382,300 | 3,259,700 | 2,593,700 | 2,738,300 | 2,667,000 | 2,360,300 | 1,974,400 | 2,057,100 | 2,169,000 | 2,187,500 | 2,078,700 | 2,311,300 | 2,424,800 | 2,307,600 |
| Inventory turnover | 3.54 | 3.28 | 3.13 | 3.13 | 3.43 | 3.13 | 2.99 | 3.08 | 3.75 | 3.43 | 3.45 | 3.62 | 4.15 | 2.80 | 2.54 | 2.65 | 2.83 | 3.56 | 3.43 | 3.67 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,163,900K ÷ $3,440,700K
= 3.54
AGCO Corp.'s inventory turnover has shown a gradual improvement over the past eight quarters. The inventory turnover ratio measures the efficiency with which the company manages its inventory. A higher inventory turnover indicates that the company sells its inventory quickly and efficiently.
In Q4 2023, the inventory turnover ratio stood at 3.09, reflecting an increase compared to the previous quarter. This suggests that AGCO Corp. is managing its inventory more effectively and selling its goods at a faster rate. The trend of increasing inventory turnover over the past year indicates that the company is improving its inventory management practices.
Overall, AGCO Corp.'s inventory turnover ratios over the last eight quarters have been relatively stable, hovering around the range of 2.63 to 3.09. This indicates that the company has been consistent in its inventory management efficiency. However, the recent uptick in the ratio suggests potential improvements in the company's operations, leading to increased sales velocity and potentially lower inventory carrying costs.
Peer comparison
Dec 31, 2023
Dec 31, 2023