AGCO Corporation (AGCO)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,772,400 | 11,494,600 | 12,021,900 | 11,863,000 | 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 |
| Payables | US$ in thousands | 813,000 | 961,100 | 1,075,700 | 1,238,000 | 1,207,300 | 1,308,400 | 1,391,100 | 1,426,600 | 1,385,300 | 1,171,400 | 1,204,100 | 1,276,400 | 1,078,300 | 1,092,400 | 1,141,200 | 1,097,500 | 855,100 | 819,900 | 792,100 | 821,900 |
| Payables turnover | 13.25 | 11.96 | 11.18 | 9.58 | 10.08 | 9.33 | 8.63 | 7.98 | 7.90 | 8.90 | 8.40 | 7.85 | 9.03 | 8.59 | 8.06 | 7.78 | 9.59 | 7.03 | 6.94 | 7.06 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,772,400K ÷ $813,000K
= 13.25
AGCO Corporation's payables turnover has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The payables turnover ratio calculates how efficiently a company is managing its payables by comparing the cost of goods sold to average accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be seen as a positive indicator of financial health and effective working capital management.
Looking at the data provided, the payables turnover ratio ranged from a low of 6.94 in June 30, 2020, to a high of 13.25 in December 31, 2024. Generally, an increasing trend in the payables turnover ratio over time suggests that AGCO Corporation is improving its efficiency in managing payables. However, the ratio also experienced fluctuations within certain periods, which may indicate changes in payment terms, purchasing strategies, or supply chain dynamics.
It is worth noting that a very high payables turnover ratio could potentially signal difficulties in maintaining good relationships with suppliers or suggest that the company is overly aggressive in negotiating payment terms. On the other hand, a significantly low payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could potentially strain relationships or signal liquidity issues.
In conclusion, analyzing AGCO Corporation's payables turnover ratio provides insights into the company's ability to manage its accounts payable efficiently and effectively. It is essential for stakeholders to monitor this ratio over time to evaluate the company's working capital management practices and financial performance.
Peer comparison
Dec 31, 2024