AGCO Corporation (AGCO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.21% | 26.22% | 11.87% | 11.55% | 11.25% |
| Operating profit margin | -1.10% | 11.80% | 5.00% | 4.50% | 3.28% |
| Pretax margin | -2.95% | 9.73% | 4.69% | 4.51% | 3.36% |
| Net profit margin | -3.84% | 8.13% | 3.52% | 4.03% | 2.34% |
AGCO Corporation's profitability ratios have shown fluctuations over the years. The gross profit margin has increased steadily from 11.25% in 2020 to 26.21% in 2024, reflecting an improvement in the company's ability to control direct production costs.
The operating profit margin also demonstrated an upward trend, with a significant jump from 3.28% in 2020 to 11.80% in 2023. However, it dropped sharply to -1.10% in 2024, indicating a decrease in operating efficiency or an increase in operating expenses that outpaced revenue growth.
Similarly, the pretax margin increased from 3.36% in 2020 to 9.73% in 2023, signaling an improvement in pre-tax profitability. Nonetheless, it deteriorated substantially to -2.95% in 2024, suggesting challenges in generating profits before accounting for taxes.
The net profit margin also exhibited variations, rising from 2.34% in 2020 to 8.13% in 2023. However, it turned negative in 2024 at -3.84%, indicating that the company experienced a net loss for that year.
Overall, AGCO Corporation's profitability ratios indicate mixed performance, with improvements in some aspects but challenges in maintaining profitability in the most recent period. Further analysis of the underlying factors driving these fluctuations would be necessary to understand the company's financial health comprehensively.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.09% | 14.89% | 12.52% | 10.91% | 7.05% |
| Return on assets (ROA) | -3.80% | 10.26% | 8.80% | 9.77% | 5.02% |
| Return on total capital | -2.04% | 24.37% | 23.94% | 21.35% | 15.10% |
| Return on equity (ROE) | -11.35% | 25.16% | 22.91% | 26.26% | 14.33% |
AGCO Corporation's profitability ratios have fluctuated over the years.
- The Operating Return on Assets (Operating ROA) has shown a positive trend, increasing from 7.05% in 2020 to 14.89% in 2023, before dropping significantly to -1.09% in 2024. This ratio indicates the company's ability to generate operating income from its assets.
- The Return on Assets (ROA) improved from 5.02% in 2020 to 10.26% in 2023, but then sharply decreased to -3.80% in 2024. ROA reflects the company's overall profitability in relation to its total assets.
- Return on Total Capital exhibited a similar pattern, climbing from 15.10% in 2020 to 24.37% in 2023, then declining to -2.04% in 2024. This metric assesses the company's efficiency in generating returns for both equity and debt holders.
- Return on Equity (ROE) saw a notable increase from 14.33% in 2020 to 26.26% in 2021, followed by some fluctuations, but concluded with a negative figure of -11.35% in 2024. ROE signifies the return generated on shareholders' equity investment.
Overall, while AGCO Corporation experienced fluctuations in profitability ratios, the negative trends in 2024 may indicate challenges in maintaining historical levels of profitability and efficiency in asset utilization. Further analysis of the company's financial performance and strategy would be necessary to understand the drivers behind these fluctuations.