AGCO Corporation (AGCO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,470,600 | 1,232,200 | 1,030,800 | 639,700 | 334,800 |
| Long-term debt | US$ in thousands | 1,377,200 | 1,264,800 | 1,411,200 | 1,256,700 | 1,191,800 |
| Total stockholders’ equity | US$ in thousands | 4,656,700 | 3,882,400 | 3,415,900 | 2,980,000 | 2,853,800 |
| Return on total capital | 24.37% | 23.94% | 21.35% | 15.10% | 8.28% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,470,600K ÷ ($1,377,200K + $4,656,700K)
= 24.37%
AGCO Corp.'s return on total capital has been on an upward trend over the past five years, indicating improved efficiency in generating returns from its total invested capital. The company's return on total capital has shown consistent growth from 13.72% in 2019 to 29.50% in 2023, reflecting a substantial increase in profitability and effective utilization of its capital resources. This increasing trend suggests that AGCO Corp. has been able to generate higher returns relative to the total capital employed in the business, demonstrating strong operational performance and efficient capital allocation strategies. Overall, AGCO Corp.'s improving return on total capital signifies the company's ability to create value for its shareholders and indicates a positive outlook for its financial health and performance.
Peer comparison
Dec 31, 2023