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

Company name
Symbol
Gross profit margin
AGCO Corporation
AGCO
26.22%
Alamo Group Inc
ALG
26.85%
Deere & Company
DE
88.87%
Lindsay Corporation
LNN
31.47%