AGCO Corporation (AGCO)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,772,400 | 12,163,900 | 10,939,500 | 9,733,000 | 8,196,600 |
| Payables | US$ in thousands | 813,000 | 1,207,300 | 1,385,300 | 1,078,300 | 855,100 |
| Payables turnover | 13.25 | 10.08 | 7.90 | 9.03 | 9.59 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,772,400K ÷ $813,000K
= 13.25
The payables turnover ratio of AGCO Corporation has exhibited fluctuations over the years. As of December 31, 2020, the ratio was 9.59, indicating that the company converted its accounts payable into purchases approximately 9.59 times during the year. This ratio decreased to 9.03 by December 31, 2021, suggesting a slight slowdown in the company's ability to pay off its liabilities.
However, by December 31, 2022, the payables turnover ratio further decreased to 7.90, signaling a potential extended payment period to suppliers or lower levels of accounts payable relative to cost of goods sold. The trend reversed in the following years, with the ratio increasing to 10.08 by December 31, 2023, and significantly surging to 13.25 by December 31, 2024.
The substantial increase in the payables turnover ratio in 2024 may indicate improved efficiency in managing accounts payable or more aggressive payment policies towards suppliers. Overall, the fluctuating trends in the payables turnover ratio reflect changes in AGCO Corporation's payment practices and relationships with its suppliers over the analyzed period.
Peer comparison
Dec 31, 2024