AGCO Corporation (AGCO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 612,700 | 595,500 | 789,500 | 889,100 | 1,119,100 |
| Short-term investments | US$ in thousands | 700 | — | — | — | 442,000 |
| Receivables | US$ in thousands | 1,267,400 | 1,605,300 | 1,221,300 | 991,500 | 856,000 |
| Total current liabilities | US$ in thousands | 3,826,000 | 4,343,600 | 4,088,000 | 3,454,600 | 3,362,800 |
| Quick ratio | 0.49 | 0.51 | 0.49 | 0.54 | 0.72 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($612,700K
+ $700K
+ $1,267,400K)
÷ $3,826,000K
= 0.49
AGCO Corporation's quick ratio has shown a declining trend over the five-year period from December 31, 2020, to December 31, 2024. The quick ratio dropped from 0.72 in 2020 to 0.54 in 2021 and continued to decrease to 0.49 in 2022 and 2024. Although there was a slight improvement to 0.51 in 2023, the overall trend indicates a decreasing ability to meet short-term obligations using its most liquid assets. This declining trend may raise concerns about AGCO Corporation's liquidity position and its ability to cover immediate financial obligations with its quick assets. Further analysis of the company's liquidity management and operational efficiency is recommended to address the decreasing trend in the quick ratio.
Peer comparison
Dec 31, 2024