AGCO Corporation (AGCO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.22% | 11.87% | 11.55% | 11.25% | 10.99% |
| Operating profit margin | 11.80% | 5.00% | 4.50% | 3.28% | 1.93% |
| Pretax margin | 9.73% | 4.69% | 4.51% | 3.36% | 1.69% |
| Net profit margin | 8.13% | 3.52% | 4.03% | 2.34% | 0.69% |
AGCO Corp.'s profitability ratios have shown a consistent improvement over the past five years. The gross profit margin has gradually increased from 21.95% in 2019 to 26.21% in 2023, indicating that the company has been able to effectively manage its cost of goods sold.
The operating profit margin has also shown a steady upward trend, rising from 5.90% in 2019 to 11.91% in 2023. This suggests that AGCO Corp. has been able to control its operating expenses and generate more profitability from its core business operations.
Furthermore, the pretax margin has shown improvement over the years, increasing from 3.36% in 2019 to 9.73% in 2023. This indicates that the company has become more efficient in managing its taxes and other pre-tax expenses.
The net profit margin has also significantly improved from 1.38% in 2019 to 8.13% in 2023. This indicates that AGCO Corp. has become more effective in managing its overall profitability after accounting for all expenses, including taxes and interest payments.
Overall, AGCO Corp.'s profitability ratios reflect a positive trend, indicating improved efficiency in managing costs and generating profits over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.89% | 12.52% | 10.91% | 7.05% | 4.49% |
| Return on assets (ROA) | 10.26% | 8.80% | 9.77% | 5.02% | 1.61% |
| Return on total capital | 24.37% | 23.94% | 21.35% | 15.10% | 8.28% |
| Return on equity (ROE) | 25.16% | 22.91% | 26.26% | 14.33% | 4.39% |
AGCO Corp. has demonstrated consistent improvement in its profitability ratios over the past five years. The operating return on assets (Operating ROA) has steadily increased from 6.88% in 2019 to 15.03% in 2023, indicating the company's ability to generate operating income relative to its total assets.
Similarly, the Return on assets (ROA) has shown an upward trend from 1.61% in 2019 to 10.26% in 2023, reflecting AGCO Corp.'s efficiency in generating profit from its assets. This improvement suggests effective asset management and operational performance.
The Return on total capital has also displayed a consistent growth pattern, reaching 29.50% in 2023 from 13.72% in 2019. This ratio highlights the company's ability to generate returns for both equity and debt holders, showcasing strong overall profitability.
Furthermore, the Return on equity (ROE) has notably increased from 4.39% in 2019 to 25.16% in 2023, demonstrating AGCO Corp.'s enhanced ability to generate returns for its shareholders. This improvement indicates efficient utilization of equity capital to generate profits and create value for shareholders.
Overall, the profitability ratios of AGCO Corp. reflect a positive trend, showcasing improved operational efficiency and profitability over the analyzed period.