AGCO Corporation (AGCO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -122,100 | 1,700,400 | 1,265,400 | 1,001,400 | 599,700 |
| Total assets | US$ in thousands | 11,190,600 | 11,421,200 | 10,103,700 | 9,182,100 | 8,504,200 |
| Operating ROA | -1.09% | 14.89% | 12.52% | 10.91% | 7.05% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-122,100K ÷ $11,190,600K
= -1.09%
AGCO Corporation's operating return on assets (ROA) has shown a positive trend from 2020 to 2023, with significant improvement in performance. The operating ROA increased from 7.05% in December 2020 to 14.89% in December 2023, indicating enhanced efficiency in generating operating profits from its assets during this period. However, there was a notable decline in the operating ROA to -1.09% by December 2024, suggesting a potential decrease in profitability relative to assets utilized. It is crucial for AGCO Corporation to investigate the reasons behind this negative trend and take necessary corrective actions to improve its operating ROA in the future.
Peer comparison
Dec 31, 2024