AGCO Corporation (AGCO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -424,800 | 1,171,400 | 889,600 | 897,000 | 427,100 |
| Total assets | US$ in thousands | 11,190,600 | 11,421,200 | 10,103,700 | 9,182,100 | 8,504,200 |
| ROA | -3.80% | 10.26% | 8.80% | 9.77% | 5.02% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-424,800K ÷ $11,190,600K
= -3.80%
AGCO Corporation's return on assets (ROA) has shown variability over the years based on the provided data. From December 31, 2020, to December 31, 2021, there was a substantial improvement in ROA, increasing from 5.02% to 9.77%. This suggests that AGCO effectively utilized its assets to generate higher profits in 2021.
In the following year, the ROA slightly decreased to 8.80% by December 31, 2022, indicating a relatively lower return on assets compared to the previous year. However, AGCO managed to improve its ROA again by December 31, 2023, reaching 10.26%, showing efficiency in utilizing its assets to generate profits.
The data then shows a significant decline in AGCO's ROA by December 31, 2024, dropping to -3.80%. This negative ROA indicates that AGCO experienced a loss on its assets, failing to generate sufficient profits relative to its asset base. It would be important for AGCO to analyze the reasons behind this sharp decline and take appropriate actions to improve its asset efficiency and profitability in the future.
Peer comparison
Dec 31, 2024