AGCO Corporation (AGCO)
Payables 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 |
| Payables | US$ in thousands | 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 | 914,800 | 817,300 | 931,400 | 964,300 |
| Payables turnover | 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 | 6.43 | 10.06 | 8.93 | 8.77 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,163,900K ÷ $1,207,300K
= 10.08
The payables turnover ratio measures how efficiently a company manages its accounts payable. A higher payables turnover ratio indicates that a company is paying off its suppliers quickly, which can be a positive sign of financial health.
Looking at AGCO Corp.'s payables turnover over the past 8 quarters, we observe a fluctuating trend. In Q4 2023, the payables turnover ratio was 8.81, which is higher than in the previous quarter (Q3 2023), indicating that AGCO Corp. was able to pay off its suppliers at a faster rate in Q4.
Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), we see an improvement from 6.97 to 8.81, signaling that AGCO Corp. has been more efficient in managing its accounts payable over the year.
Overall, the trend in AGCO Corp.'s payables turnover ratio suggests that the company has been effectively managing its accounts payable by paying off its suppliers efficiently, which can positively impact its liquidity and relationships with suppliers. However, fluctuations in the ratio should be further analyzed to understand the underlying reasons for the changes.
Peer comparison
Dec 31, 2023