AGCO Corporation (AGCO)

Liquidity ratios

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
Current ratio 1.46 1.62 1.57 1.59 1.40 1.58 1.57 1.64 1.45 1.35 1.31 1.26 1.30 1.38 1.48 1.49 1.29 1.31 1.29 1.30
Quick ratio 0.51 0.56 0.50 0.52 0.49 0.49 0.48 0.51 0.54 0.58 0.57 0.57 0.72 0.67 0.50 0.47 0.43 0.40 0.40 0.40
Cash ratio 0.14 0.17 0.11 0.14 0.19 0.17 0.16 0.19 0.26 0.29 0.27 0.26 0.46 0.32 0.16 0.15 0.15 0.09 0.09 0.10

AGCO Corp.'s liquidity ratios provide insight into its ability to meet short-term obligations. The current ratio for the company has ranged from 1.40 to 1.62 over the past eight quarters, indicating that AGCO has generally been able to cover its current liabilities with its current assets. A current ratio above 1 suggests a healthy position in terms of liquidity.

In terms of quick ratio, AGCO Corp.'s ratios have ranged from 0.62 to 0.72 over the same period. This ratio excludes inventory from current assets, providing a more stringent measure of liquidity. Although the quick ratios have been lower than the current ratios, they still indicate AGCO's ability to meet short-term obligations without relying significantly on inventory.

AGCO Corp.'s cash ratio has fluctuated between 0.28 and 0.37 over the eight quarters. This ratio represents the most conservative measure of liquidity, as it considers only cash and cash equivalents to cover current liabilities. The decrease in the cash ratio over time may indicate a decreasing ability to cover short-term obligations solely with cash on hand.

In conclusion, AGCO Corp.'s liquidity ratios, including the current ratio, quick ratio, and cash ratio, demonstrate varying levels of liquidity over the past two years. Overall, the company has maintained a relatively stable liquidity position, with room for improvement in terms of increasing immediate cash availability to cover short-term obligations.

Additional liquidity measure

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
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

The cash conversion cycle for AGCO Corp. has shown some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 117.31 days, a decrease from the previous quarter's 123.24 days. This indicates that AGCO Corp. was able to convert its investments in inventory and accounts receivable into cash more efficiently in Q4 2023 compared to Q3 2023.

However, when looking at the trend over the past year, the cash conversion cycle has generally increased from Q1 2022 to Q2 2023 before decreasing slightly in Q4 2023. This suggests that AGCO Corp. may have faced challenges in managing its inventory and accounts receivable efficiently during certain periods.

Overall, monitoring and managing the cash conversion cycle is essential for AGCO Corp. to optimize its working capital and cash flow management. It is important for the company to continually assess and improve its inventory and accounts receivable management processes to ensure a healthy cash conversion cycle going forward.