AGCO Corporation (AGCO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 26.21% | 25.38% | 26.24% | 26.37% | 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% |
| Operating profit margin | -1.10% | 4.29% | 6.32% | 11.33% | 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% |
| Pretax margin | -2.95% | 1.72% | 3.95% | 9.19% | 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% |
| Net profit margin | -3.84% | 1.35% | 3.13% | 7.90% | 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% |
AGCO Corporation's profitability ratios have shown fluctuations over the period under analysis. The gross profit margin, which indicates the efficiency of the company's production and pricing strategies, displayed a gradual increase from March 31, 2023, reaching a peak of 26.24% on June 30, 2024, before slightly decreasing to 26.21% on December 31, 2024.
In terms of operating profit margin, AGCO's performance varied significantly. After a consistent increase from March 31, 2020, to December 31, 2023, reaching a high of 11.80%, the margin experienced a sharp decline to -1.10% on December 31, 2024. This could be attributed to increased operating expenses or other negative impacts on profitability during that period.
The pretax margin, which represents the company's profitability before taxes, followed a similar trend as the operating profit margin, showcasing a steady rise until March 31, 2024. However, it significantly dropped to -2.95% on December 31, 2024, which may indicate challenges in controlling expenses or other financial difficulties impacting the company.
Lastly, the net profit margin, reflecting AGCO's overall profitability after all expenses, exhibited an overall upward trend from March 31, 2020, to December 31, 2023, reaching a peak of 8.13%. Nonetheless, there was a notable decline to -3.84% on December 31, 2024, highlighting potential issues affecting the company's bottom line.
In conclusion, while AGCO Corporation demonstrated improvements in certain profitability ratios over the period, there were also challenges reflected in decreasing margins in the latter part of the analysis. Further investigation into the factors influencing these fluctuations would be necessary to understand the company's financial performance comprehensively.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.09% | 4.00% | 6.23% | 11.79% | 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% |
| Return on assets (ROA) | -3.80% | 1.26% | 3.09% | 8.22% | 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% |
| Return on total capital | -2.04% | 6.96% | 11.09% | 19.40% | 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% |
| Return on equity (ROE) | -11.35% | 4.10% | 10.37% | 23.28% | 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% |
AGCO Corporation's profitability ratios show a mixed performance over the past few years. The Operating Return on Assets (Operating ROA) has shown a general increasing trend from 4.62% in March 2020 to a peak of 15.62% in September 2023, before slightly declining to 11.79% in March 2024. This indicates that the company has been effectively generating operating profits from its assets, with a temporary dip in the most recent period.
The Return on Assets (ROA) also followed a similar pattern, starting at 1.62% in March 2020, reaching a high of 10.26% in December 2023, and then dropping to -1.09% in December 2024. This shows that AGCO Corporation's overall profitability in relation to its total assets has fluctuated significantly, ending the period with a negative return in December 2024.
Return on Total Capital has displayed a more stable growth trajectory, steadily increasing from 8.26% in March 2020 to a high of 28.26% in September 2023, and then declining to 6.96% in September 2024. This metric reflects the company's ability to generate returns for both equity and debt holders on the total capital employed, with a significant drop in the most recent quarter.
Return on Equity (ROE) has also shown a similar trend of improvement from 4.72% in March 2020 to a peak of 26.87% in June 2023, before decreasing to 10.37% in June 2024 and turning negative at -11.35% in December 2024. AGCO Corporation's ability to generate profits for its shareholders has been erratic, with notable fluctuations in the most recent periods.
Overall, while AGCO Corporation has demonstrated strong profitability metrics in certain quarters, there have been inconsistent results in the most recent periods. The company may need to focus on sustainability and efficiency in its operations to maintain and improve its profitability ratios in the future.