AGCO Corporation (AGCO)
Working capital 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 current assets | US$ in thousands | 5,138,000 | 6,538,900 | 6,638,700 | 8,374,100 | 6,340,800 | 6,675,100 | 6,747,000 | 6,328,800 | 5,739,300 | 5,701,500 | 5,704,300 | 5,637,000 | 5,014,100 | 4,807,900 | 4,728,200 | 4,298,300 | 4,368,400 | 3,944,700 | 3,870,900 | 3,810,000 |
| Total current liabilities | US$ in thousands | 3,826,000 | 4,280,100 | 4,363,500 | 4,213,200 | 4,343,600 | 4,119,100 | 4,302,500 | 3,984,300 | 4,088,000 | 3,617,900 | 3,630,500 | 3,435,200 | 3,454,600 | 3,549,200 | 3,619,300 | 3,414,600 | 3,362,800 | 2,857,500 | 2,607,700 | 2,562,100 |
| Working capital turnover | 8.43 | 5.57 | 5.90 | 3.37 | 7.21 | 7.20 | 8.67 | 9.92 | 15.32 | 11.43 | 11.10 | 10.39 | 14.28 | 17.00 | 18.88 | 21.71 | 18.18 | 11.84 | 9.57 | 10.36 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,059,700K ÷ ($5,138,000K – $3,826,000K)
= 8.43
AGCO Corporation's working capital turnover has shown fluctuating trends over the past few years. The ratio indicates how efficiently the company is utilizing its working capital to support its operations and generate sales revenue.
The working capital turnover ratio has experienced a significant increase from March 31, 2021, where it was 21.71, to December 31, 2021, where it was 14.28. This suggests that AGCO Corporation was able to generate more sales revenue per dollar of working capital during this period. However, the ratio started to decline from March 31, 2022, and continued to decrease through December 31, 2024.
The decreasing trend from 2022 to 2024 may indicate potential inefficiencies in managing working capital or challenges in turning working capital into sales revenue effectively. A lower working capital turnover ratio could imply that the company may be holding excessive levels of inventory or facing difficulties in collecting receivables, tying up capital that could otherwise be invested in more productive activities.
Overall, AGCO Corporation should closely monitor its working capital turnover ratio and take appropriate measures to improve its efficiency in utilizing working capital to support its business operations and drive revenue growth. A consistent analysis and proactive management of working capital can help optimize the company's financial performance and overall profitability in the long run.
Peer comparison
Dec 31, 2024