AGCO Corporation (AGCO)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,059,700 | 12,580,600 | 13,431,300 | 14,001,600 | 14,407,800 | 18,393,300 | 21,184,200 | 23,251,800 | 25,289,800 | 23,806,900 | 23,015,000 | 22,886,900 | 22,269,900 | 21,391,700 | 20,934,100 | 19,185,200 | 18,284,400 | 12,873,900 | 12,094,900 | 12,926,600 |
| Receivables | US$ in thousands | 1,267,400 | 1,448,400 | 1,465,900 | 1,542,200 | 1,605,300 | 1,643,900 | 1,706,400 | 1,530,700 | 1,221,300 | 1,175,900 | 1,149,300 | 1,108,200 | 991,500 | 1,056,600 | 1,099,000 | 1,048,200 | 856,000 | 990,100 | 903,300 | 825,000 |
| Receivables turnover | 8.73 | 8.69 | 9.16 | 9.08 | 8.98 | 11.19 | 12.41 | 15.19 | 20.71 | 20.25 | 20.03 | 20.65 | 22.46 | 20.25 | 19.05 | 18.30 | 21.36 | 13.00 | 13.39 | 15.67 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $11,059,700K ÷ $1,267,400K
= 8.73
The receivables turnover ratio measures how efficiently a company collects its accounts receivable during a specific period. Looking at the receivables turnover trend for AGCO Corporation from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time.
AGCO's receivables turnover ratio decreased from 15.67 on March 31, 2020, to a low of 8.69 on September 30, 2024. This decline indicates a slower rate of collection from customers, potentially signaling issues with credit policies or customer payment behavior.
However, the ratio slightly increased to 20.71 by December 31, 2022, before declining again. The variations in the turnover ratio suggest changes in the company's credit management practices or the industry's economic conditions impacting customer payment cycles.
The company experienced a substantial drop in receivables turnover from March 31, 2023, to December 31, 2024, indicating a longer period to collect accounts receivable. This may raise concerns about liquidity and cash flow management, as the company may be waiting longer to convert sales into cash.
Overall, a thorough analysis of AGCO Corporation's receivables turnover ratio shows fluctuations in the efficiency of collecting outstanding receivables over the period, which could merit further investigation into the company's credit and collection policies.
Peer comparison
Dec 31, 2024