AGCO Corporation (AGCO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -122,100 | 1,470,600 | 1,232,200 | 1,030,800 | 639,700 |
| Long-term debt | US$ in thousands | 2,233,300 | 1,377,200 | 1,264,800 | 1,411,200 | 1,256,700 |
| Total stockholders’ equity | US$ in thousands | 3,742,800 | 4,656,700 | 3,882,400 | 3,415,900 | 2,980,000 |
| Return on total capital | -2.04% | 24.37% | 23.94% | 21.35% | 15.10% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-122,100K ÷ ($2,233,300K + $3,742,800K)
= -2.04%
AGCO Corporation's return on total capital has shown an improving trend over the years, increasing from 15.10% in 2020 to a peak of 24.37% in 2023. This indicates that the company has been able to generate higher returns relative to the total capital employed in its operations during this period.
However, it is worth noting that there was a significant drop in the return on total capital to -2.04% in 2024. This negative return suggests that the company may have experienced challenges in generating profits in relation to the capital invested in that particular year.
Overall, AGCO Corporation's return on total capital demonstrates fluctuations in performance, with periods of strong profitability followed by a significant decline in returns. This variability may indicate changing market conditions or internal challenges impacting the company's ability to effectively utilize its capital resources.
Peer comparison
Dec 31, 2024