AGCO Corporation (AGCO)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,401,800 | 1,186,200 | 1,005,400 | 614,800 | 306,000 |
| Revenue | US$ in thousands | 14,407,800 | 25,289,800 | 22,269,900 | 18,284,400 | 18,062,900 |
| Pretax margin | 9.73% | 4.69% | 4.51% | 3.36% | 1.69% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,401,800K ÷ $14,407,800K
= 9.73%
AGCO Corp.'s pretax margin has shown a consistent upward trend over the past five years. The company's pretax margin improved from 3.36% in 2019 to 9.73% in 2023. This indicates that AGCO Corp. has been able to effectively manage its operating expenses relative to its revenue, resulting in a higher percentage of income before taxes. The steady increase in pretax margin reflects improving efficiency and profitability in the company's operations. Furthermore, the increasing pretax margin suggests that AGCO Corp. has been successful in growing its earnings while controlling costs, a positive sign for investors and stakeholders.
Peer comparison
Dec 31, 2023