AGCO Corporation (AGCO)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,340,800 | 5,739,300 | 5,014,100 | 4,368,400 | 3,729,100 |
| Total current liabilities | US$ in thousands | 4,343,600 | 4,088,000 | 3,454,600 | 3,362,800 | 2,884,500 |
| Current ratio | 1.46 | 1.40 | 1.45 | 1.30 | 1.29 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,340,800K ÷ $4,343,600K
= 1.46
The current ratio measures a company's ability to cover its short-term liabilities with its current assets. A ratio above 1 indicates that a company has more current assets than current liabilities, which is a positive sign of liquidity.
AGCO Corp.'s current ratio has shown a generally stable trend over the past five years, ranging from 1.29 in 2019 to 1.46 in 2023. This indicates that the company has been able to maintain a healthy level of liquidity over the period.
The improvement in the current ratio from 2020 to 2023 suggests that AGCO Corp. has managed its current assets more effectively relative to its current liabilities. This may be attributed to better management of inventory, receivables, and cash flow, which are key components of current assets.
Overall, AGCO Corp.'s current ratio indicates that the company is in a good position to meet its short-term obligations and has a sufficient buffer of current assets to cover its current liabilities. However, it is important to continue monitoring the ratio to ensure sustained liquidity and financial stability.
Peer comparison
Dec 31, 2023