AGCO Corporation (AGCO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,742,800 | 4,656,700 | 3,882,400 | 3,415,900 | 2,980,000 |
| ROE | -11.35% | 25.16% | 22.91% | 26.26% | 14.33% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-424,800K ÷ $3,742,800K
= -11.35%
AGCO Corporation's return on equity (ROE) has shown fluctuations over the years. In 2020, the ROE was 14.33%, indicating that the company generated a return of 14.33% on every dollar of shareholder equity. The ROE increased significantly in 2021 to 26.26%, suggesting improved profitability and efficient use of equity to generate earnings.
By the end of 2022, the ROE decreased slightly to 22.91%, but still remained at a healthy level, reflecting the company's ability to generate solid returns for shareholders. In 2023, the ROE further improved to 25.16%, indicating continued profitability and effective management of equity investments.
However, by the end of 2024, the ROE declined sharply to -11.35%. This negative ROE suggests that AGCO Corporation incurred a net loss for the year, potentially due to various factors such as operational challenges, financial difficulties, or one-time charges.
Overall, AGCO Corporation's ROE performance has been mixed, with positive trends in some years and a notable decline in 2024. It is important for investors and stakeholders to further investigate the reasons behind the fluctuations in ROE to assess the company's financial health and performance.
Peer comparison
Dec 31, 2024