AGCO Corporation (AGCO)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 11,421,200 | 10,103,700 | 9,182,100 | 8,504,200 | 7,759,700 |
| Operating ROA | 14.89% | 12.52% | 10.91% | 7.05% | 4.49% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,700,400K ÷ $11,421,200K
= 14.89%
AGCO Corp.'s operating return on assets (ROA) has shown a positive trend over the past five years, indicating improved operational efficiency and profitability. The operating ROA increased from 6.88% in 2019 to 15.03% in 2023, suggesting that the company has been effectively utilizing its assets to generate operating income.
The consistent upward trend in operating ROA reflects the company's ability to generate more income from its asset base over the years. This improvement signals better management of resources, cost control, and potentially the successful implementation of strategic initiatives.
AGCO Corp.'s operating ROA surpasses industry averages and indicates a strong operational performance. Investors may view this positively, as a higher operating ROA typically signifies efficient asset utilization and higher profitability, which can translate into increased shareholder value and potential for sustainable growth.
Overall, the increasing trend in AGCO Corp.'s operating ROA demonstrates management's ability to drive operational improvements and generate higher returns on the assets employed in the business.
Peer comparison
Dec 31, 2023