AGCO Corporation (AGCO)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 103.24 | 111.45 | 116.51 | 116.79 | 106.43 | 116.44 | 122.04 | 118.68 | 97.27 | 106.47 | 105.89 | 100.84 | 87.91 | 130.28 | 143.97 | 137.60 | 129.06 | 102.58 | 106.37 | 99.57 |
| Days of sales outstanding (DSO) | days | 40.67 | 32.62 | 29.40 | 24.03 | 17.63 | 18.03 | 18.23 | 17.67 | 16.25 | 18.03 | 19.16 | 19.94 | 17.09 | 28.07 | 27.26 | 23.29 | 22.37 | 18.41 | 20.04 | 18.20 |
| Number of days of payables | days | 36.23 | 39.14 | 42.32 | 45.74 | 46.22 | 41.02 | 43.45 | 46.47 | 40.44 | 42.48 | 45.31 | 46.89 | 38.07 | 51.93 | 52.58 | 51.70 | 56.80 | 36.27 | 40.86 | 41.61 |
| Cash conversion cycle | days | 107.69 | 104.94 | 103.59 | 95.08 | 77.83 | 93.44 | 96.82 | 89.88 | 73.08 | 82.03 | 79.74 | 73.90 | 66.92 | 106.43 | 118.65 | 109.19 | 94.63 | 84.72 | 85.55 | 76.16 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 103.24 + 40.67 – 36.23
= 107.69
The cash conversion cycle of AGCO Corp. has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle decreased to 117.31 days from 123.24 days in Q3 2023. This indicates that AGCO Corp. was able to convert its investments in inventory and accounts receivable into cash more efficiently during this quarter.
Comparing Q4 2023 to the same quarter of the previous year (Q4 2022), there has been an increase in the cash conversion cycle from 103.48 days to 117.31 days. This suggests that AGCO Corp. took longer to convert its investments into cash in Q4 2023 compared to the previous year.
Overall, the trend in the cash conversion cycle of AGCO Corp. has been somewhat volatile, with fluctuations in efficiencies in managing inventory and receivables. It is essential for the company to closely monitor and improve its cash conversion cycle to optimize its working capital management and ensure healthy cash flows.
Peer comparison
Dec 31, 2023