AGCO Corporation (AGCO)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,700,400 | 1,265,400 | 1,001,400 | 599,700 | 348,100 |
| Revenue | US$ in thousands | 14,407,800 | 25,289,800 | 22,269,900 | 18,284,400 | 18,062,900 |
| Operating profit margin | 11.80% | 5.00% | 4.50% | 3.28% | 1.93% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,700,400K ÷ $14,407,800K
= 11.80%
Based on the data provided for AGCO Corp.'s operating profit margin over the last five years, we observe a positive trend of increasing profitability. The operating profit margin has consistently improved from 5.90% in 2019 to 11.91% in 2023. This indicates that AGCO Corp. has been effectively managing its operating expenses relative to its revenue, resulting in a higher percentage of operating profit generated per dollar of sales.
The steady growth in operating profit margin suggests that the company has successfully enhanced operational efficiency and cost control measures over the years. This improvement reflects positively on the company's ability to generate profits from its core business activities.
Overall, the trend of increasing operating profit margin for AGCO Corp. signifies a strengthening financial performance and effective operational management, which can enhance investor confidence and support future growth prospects.
Peer comparison
Dec 31, 2023