AGCO Corporation (AGCO)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 13,061,500 | 18,200,000 | 18,410,000 | 18,624,800 |
| Receivables | US$ in thousands | 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 | 800,500 | 918,100 | 1,010,700 | 928,500 |
| Receivables turnover | 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 | 16.32 | 19.82 | 18.22 | 20.06 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $14,407,800K ÷ $1,605,300K
= 8.98
AGCO Corp.'s receivables turnover ratio for the past eight quarters has shown a consistent range of values between 8.31 and 10.36. The ratio measures the company's efficiency in collecting outstanding receivables from customers during a specific period. A higher ratio indicates that AGCO Corp. is collecting its accounts receivable more frequently within the period, which is generally seen as a positive sign of strong liquidity and effective credit policies.
The decreasing trend in receivables turnover from Q4 2022 to Q2 2023 suggests a slightly slower collection of receivables during this period. However, the ratio rebounded in Q3 2023 and Q4 2023, indicating an improvement in the efficiency of receivables collection.
Overall, AGCO Corp.'s stable and relatively high receivables turnover ratio indicates effective management of accounts receivable and a healthy cash flow cycle, which is essential for the company's financial health and operational stability.
Peer comparison
Dec 31, 2023