AGCO Corporation (AGCO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 26.22% | 20.31% | 16.71% | 13.87% | 11.87% | 11.52% | 11.43% | 11.50% | 11.55% | 11.62% | 11.64% | 11.35% | 11.25% | 15.34% | 15.27% | 15.30% | 15.19% | 11.04% | 11.04% | 10.87% |
| Operating profit margin | 11.80% | 9.64% | 7.94% | 6.23% | 5.00% | 4.47% | 4.27% | 4.41% | 4.50% | 4.28% | 4.24% | 3.62% | 3.28% | 2.89% | 2.10% | 2.75% | 2.67% | 3.06% | 3.05% | 2.85% |
| Pretax margin | 9.73% | 8.44% | 7.12% | 5.71% | 4.69% | 4.38% | 4.27% | 4.47% | 4.51% | 4.40% | 4.32% | 3.73% | 3.36% | 2.69% | 1.84% | 2.44% | 2.34% | 2.78% | 2.77% | 2.39% |
| Net profit margin | 8.13% | 6.28% | 5.25% | 4.17% | 3.52% | 3.57% | 3.45% | 3.92% | 4.03% | 3.51% | 3.47% | 2.67% | 2.34% | 1.58% | 0.44% | 0.97% | 0.96% | 1.72% | 2.04% | 1.75% |
AGCO Corp.'s profitability ratios have shown a generally positive trend over the past eight quarters.
The gross profit margin has been improving steadily, reaching 26.21% in Q4 2023 from 23.01% in Q1 2022. This indicates that the company has been able to control its cost of goods sold effectively and generate more profit from its sales.
The operating profit margin has also shown improvement, increasing from 9.29% in Q1 2022 to 11.91% in Q4 2023. This suggests that AGCO Corp. has been able to manage its operating expenses efficiently while increasing its operating profits.
Similarly, the pretax margin and net profit margin have both shown positive trends over the quarters. The pretax margin has increased from 8.84% in Q1 2022 to 9.73% in Q4 2023, indicating enhanced profitability before accounting for taxes. The net profit margin has also improved from 6.89% in Q2 2022 to 8.13% in Q4 2023, demonstrating that the company has been successful in translating its revenues into bottom-line profit.
Overall, the consistent improvement in AGCO Corp.'s profitability ratios reflects the company's effective cost management strategies and ability to generate higher profits from its operations.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.89% | 15.62% | 14.76% | 13.40% | 12.52% | 10.83% | 9.94% | 10.23% | 10.91% | 10.24% | 10.01% | 8.36% | 7.05% | 4.68% | 3.26% | 4.62% | 4.49% | 6.89% | 6.68% | 6.47% |
| Return on assets (ROA) | 10.26% | 10.17% | 9.76% | 8.98% | 8.80% | 8.65% | 8.02% | 9.09% | 9.77% | 8.39% | 8.19% | 6.17% | 5.02% | 2.56% | 0.69% | 1.62% | 1.61% | 3.86% | 4.46% | 3.98% |
| Return on total capital | 28.18% | 28.26% | 27.33% | 24.46% | 24.58% | 19.82% | 18.21% | 18.12% | 20.75% | 20.40% | 20.43% | 17.26% | 14.15% | 8.77% | 5.86% | 8.26% | 8.60% | 13.12% | 12.86% | 12.18% |
| Return on equity (ROE) | 25.16% | 26.51% | 26.87% | 23.48% | 22.91% | 24.13% | 23.44% | 24.44% | 26.26% | 23.68% | 23.14% | 16.63% | 14.33% | 7.24% | 2.01% | 4.72% | 4.39% | 10.49% | 12.26% | 11.04% |
AGCO Corp. has shown a consistent improvement in its profitability ratios over the quarters. The Operating return on assets (Operating ROA) has been steadily increasing from 10.44% in Q2 2022 to 15.03% in Q4 2023, indicating that the company's operating income generated from its assets has been on an upward trend, which is a positive sign of operational efficiency.
Return on assets (ROA) has also shown an increasing trend, from 8.02% in Q2 2022 to 10.26% in Q4 2023. This indicates that AGCO Corp. has been able to generate more profit from its total assets over time, reflecting overall improvement in asset utilization and management efficiency.
The return on total capital has seen significant growth, from 19.02% in Q2 2022 to 29.50% in Q4 2023. This indicates that the company has been able to generate higher returns for its investors and creditors relative to the total capital employed, reflecting strong financial performance and effective capital allocation.
Return on equity (ROE) has also exhibited an increasing trend, reaching 25.16% in Q4 2023 from 23.44% in Q1 2022. This indicates that the company has been efficiently utilizing shareholders' equity to generate profits and create value for its equity investors.
Overall, the profitability ratios demonstrate that AGCO Corp. has been improving its operational efficiency, asset utilization, capital efficiency, and shareholder value creation over the quarters, which is a positive indication of the company's financial performance and management effectiveness.