AGCO Corporation (AGCO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 595,500 | 789,500 | 889,100 | 1,119,100 | 432,800 |
| Short-term investments | US$ in thousands | — | — | — | 442,000 | — |
| Receivables | US$ in thousands | 1,605,300 | 1,221,300 | 991,500 | 856,000 | 800,500 |
| Total current liabilities | US$ in thousands | 4,343,600 | 4,088,000 | 3,454,600 | 3,362,800 | 2,884,500 |
| Quick ratio | 0.51 | 0.49 | 0.54 | 0.72 | 0.43 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($595,500K
+ $—K
+ $1,605,300K)
÷ $4,343,600K
= 0.51
The quick ratio of AGCO Corp. over the past five years has exhibited some fluctuations. In 2023, the quick ratio stands at 0.67, showing a slight improvement from the previous year's ratio of 0.62. This suggests that in 2023, AGCO Corp. had $0.67 in liquid assets available to cover each dollar of current liabilities, indicating a moderate liquidity position.
Comparing 2023 to 2019, the quick ratio has increased significantly from 0.57 to 0.67, indicating an improvement in the company's ability to meet its short-term obligations using its liquid assets. However, it is important to note that the quick ratio in 2023 is still below the ratios reported in 2021 and 2020, which were 0.70 and 0.71, respectively.
Overall, while AGCO Corp.'s quick ratio has shown some variability over the years, the company has generally maintained a reasonable level of liquidity to cover its short-term liabilities. It would be beneficial for stakeholders to continue monitoring the trend in the quick ratio to assess the company's ongoing liquidity position and financial health.
Peer comparison
Dec 31, 2023