AGCO Corporation (AGCO)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,171,400 | 889,600 | 897,000 | 427,100 | 125,200 |
| Revenue | US$ in thousands | 14,407,800 | 25,289,800 | 22,269,900 | 18,284,400 | 18,062,900 |
| Net profit margin | 8.13% | 3.52% | 4.03% | 2.34% | 0.69% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $1,171,400K ÷ $14,407,800K
= 8.13%
AGCO Corp.'s net profit margin has shown a generally increasing trend over the past five years. The company's net profit margin stood at 8.13% in 2023, reflecting an improvement compared to the previous year's margin of 7.03%. This indicates that for every dollar of revenue generated, AGCO Corp. was able to retain 8.13 cents as profit in 2023.
The steady increase in net profit margin from 2019 to 2023 suggests that the company has been effectively managing its costs and expenses relative to its revenue growth. This improved profitability could be driven by factors such as operational efficiency, cost control measures, or pricing strategies.
The significant jump in net profit margin from 2019 (1.38%) to 2020 (4.67%) indicates a notable improvement in the company's profitability during that period. Subsequent years also show a positive trend, with further enhancements in profitability.
Overall, AGCO Corp.'s increasing net profit margin reflects a positive trend in its financial performance, indicating a strengthening bottom line and potentially suggesting effective management of operational costs and expenses over the years.
Peer comparison
Dec 31, 2023