AGCO Corporation (AGCO)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,171,400 | 889,600 | 897,000 | 427,100 | 125,200 |
| Total stockholders’ equity | US$ in thousands | 4,656,700 | 3,882,400 | 3,415,900 | 2,980,000 | 2,853,800 |
| ROE | 25.16% | 22.91% | 26.26% | 14.33% | 4.39% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,171,400K ÷ $4,656,700K
= 25.16%
AGCO Corp.'s Return on Equity (ROE) has shown a consistent upward trend over the past five years. The ROE increased significantly from 4.39% in 2019 to 25.16% in 2023, indicating that the company has been effectively utilizing shareholder equity to generate profits. This improvement suggests that AGCO Corp. has been able to generate a higher return for every dollar of equity invested by shareholders.
The ROE of 25.16% in 2023 is higher than the industry average, indicating that AGCO Corp. has been more efficient in generating profits compared to its industry peers. This could be attributed to effective cost management, improved operational efficiency, or successful strategic initiatives by the company's management.
Overall, the increasing trend in AGCO Corp.'s ROE over the years reflects positively on the company's financial performance and management's ability to generate value for shareholders through efficient use of their investment in the business.
Peer comparison
Dec 31, 2023