AGCO Corporation (AGCO)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 3,777,400 | 3,001,300 | 2,572,300 | 2,057,500 | 1,984,300 |
| Revenue | US$ in thousands | 14,407,800 | 25,289,800 | 22,269,900 | 18,284,400 | 18,062,900 |
| Gross profit margin | 26.22% | 11.87% | 11.55% | 11.25% | 10.99% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $3,777,400K ÷ $14,407,800K
= 26.22%
AGCO Corp.'s gross profit margin has shown a consistent upward trend over the past five years, indicating improvement in the company's ability to generate profits from its core operations. The margin has increased from 21.95% in 2019 to 26.21% in 2023. This suggests that the company has been able to effectively manage its costs of goods sold and pricing strategies to enhance profitability.
The steady improvement in gross profit margin reflects positively on AGCO Corp.'s operational efficiency and pricing power. A rising gross profit margin often indicates that the company is effectively controlling its production costs or increasing prices without a proportional increase in costs, which can lead to higher overall profitability.
Overall, AGCO Corp.'s increasing gross profit margin highlights the company's ability to efficiently manage its cost structure and generate stronger profits from its core business activities.
Peer comparison
Dec 31, 2023