AGCO Corporation (AGCO)
Total asset 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 |
| Total assets | US$ in thousands | 11,190,600 | 13,506,800 | 13,614,800 | 13,459,900 | 11,421,200 | 11,351,100 | 11,394,000 | 10,811,600 | 10,103,700 | 9,818,100 | 9,888,900 | 9,876,500 | 9,182,100 | 8,941,900 | 8,863,300 | 8,312,300 | 8,504,200 | 7,940,300 | 7,778,000 | 7,705,700 |
| Total asset turnover | 0.99 | 0.93 | 0.99 | 1.04 | 1.26 | 1.62 | 1.86 | 2.15 | 2.50 | 2.42 | 2.33 | 2.32 | 2.43 | 2.39 | 2.36 | 2.31 | 2.15 | 1.62 | 1.56 | 1.68 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $11,059,700K ÷ $11,190,600K
= 0.99
The total asset turnover ratio measures a company's ability to generate sales revenue from its total assets. A higher total asset turnover ratio indicates that the company is more efficient in utilizing its assets to generate sales.
Analyzing the total asset turnover ratio of AGCO Corporation over the provided periods, we observe fluctuations in the ratio. The ratio increased steadily from March 31, 2020, to December 31, 2021, reaching its peak at 2.50 on December 31, 2022. This indicates an improvement in the company's efficiency in generating sales from its assets during this period.
However, from March 31, 2023, the total asset turnover ratio started declining, indicating a potential decrease in efficiency in utilizing assets to drive sales. The ratio dropped to 0.99 by June 30, 2024, highlighting a significant decrease in asset turnover efficiency.
AGCO Corporation may need to evaluate its asset management strategies to improve the efficiency of generating sales from its assets, especially considering the declining trend observed in the latter part of the provided data. Management should focus on optimizing asset utilization to enhance overall operational performance and profitability in the future.
Peer comparison
Dec 31, 2024