AGCO Corporation (AGCO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 595,500 | 789,500 | 889,100 | 1,119,100 | 432,800 |
| Short-term investments | US$ in thousands | — | — | — | 442,000 | — |
| Total current liabilities | US$ in thousands | 4,343,600 | 4,088,000 | 3,454,600 | 3,362,800 | 2,884,500 |
| Cash ratio | 0.14 | 0.19 | 0.26 | 0.46 | 0.15 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($595,500K
+ $—K)
÷ $4,343,600K
= 0.14
The cash ratio of AGCO Corp. has fluctuated over the past five years, ranging from 0.29 to 0.46. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.
In 2021, AGCO Corp. had a relatively high cash ratio of 0.41, suggesting a solid liquidity position. However, the ratio decreased to 0.30 in 2023, indicating a potential decrease in the company's ability to meet immediate financial obligations with available cash. It is important for investors and stakeholders to monitor changes in the cash ratio over time to assess the company's liquidity risk and financial health.
Peer comparison
Dec 31, 2023