AGCO Corporation (AGCO)
Payables 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 |
| Payables | US$ in thousands | 1,207,300 | 1,385,300 | 1,078,300 | 855,100 | 914,800 |
| Payables turnover | 10.08 | 7.90 | 9.03 | 9.59 | 9.13 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $12,163,900K ÷ $1,207,300K
= 10.08
AGCO Corp.'s payables turnover ratio, which measures how efficiently the company pays its suppliers, has exhibited some fluctuations over the past five years. In 2023, the payables turnover ratio improved to 8.81, indicating that AGCO Corp. was able to pay off its suppliers almost 8.81 times during the year. This represents an increase from the previous year's ratio of 6.97 in 2022.
However, when comparing the current ratio to those of 2021 and 2020, we see some variability. In 2021, the payables turnover ratio was 7.94, slightly lower than in 2023, suggesting that AGCO Corp. took longer to pay its suppliers that year. The ratio was higher in 2020 at 8.29, indicating a more efficient payment cycle compared to 2021.
Looking back to 2019, the payables turnover ratio was at 7.71, showing a modest increase over the years leading up to 2023. Overall, AGCO Corp.'s payables turnover ratio has shown some volatility, with improvements in certain years and slight declines in others. Monitoring this ratio over time can provide insights into the company's liquidity and ability to manage its relationships with suppliers effectively.
Peer comparison
Dec 31, 2023