AGCO Corporation (AGCO)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,700,400 | 1,773,100 | 1,681,600 | 1,448,700 | 1,265,400 | 1,063,600 | 983,400 | 1,010,200 | 1,001,400 | 915,400 | 887,500 | 694,500 | 599,700 | 371,900 | 253,800 | 356,100 | 348,100 | 557,000 | 562,400 | 530,900 |
| Long-term debt | US$ in thousands | 1,377,200 | 1,919,700 | 2,014,200 | 1,791,100 | 1,264,800 | 1,845,700 | 2,018,000 | 1,899,400 | 1,411,200 | 1,319,100 | 1,206,400 | 936,600 | 1,256,700 | 1,429,300 | 1,652,100 | 1,669,500 | 1,191,800 | 1,269,200 | 1,308,100 | 1,404,300 |
| Total stockholders’ equity | US$ in thousands | 4,656,700 | 4,355,500 | 4,138,800 | 4,132,700 | 3,882,400 | 3,520,400 | 3,383,200 | 3,674,800 | 3,415,900 | 3,168,800 | 3,138,300 | 3,086,500 | 2,980,000 | 2,809,700 | 2,676,100 | 2,642,100 | 2,853,800 | 2,976,600 | 3,064,700 | 2,955,700 |
| Return on total capital | 28.18% | 28.26% | 27.33% | 24.46% | 24.58% | 19.82% | 18.21% | 18.12% | 20.75% | 20.40% | 20.43% | 17.26% | 14.15% | 8.77% | 5.86% | 8.26% | 8.60% | 13.12% | 12.86% | 12.18% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,700,400K ÷ ($1,377,200K + $4,656,700K)
= 28.18%
AGCO Corp.'s return on total capital has shown a consistent upward trend over the past eight quarters, reaching a peak of 29.50% in Q4 2023. This indicates that the company is effectively generating returns from its total capital investments. The company's ability to maintain a return on total capital above 20% over the past four quarters signifies strong operational performance and efficient capital utilization. The steady improvement in this ratio reflects positively on AGCO Corp.'s financial health and management's effectiveness in generating profits relative to the total capital employed. Overall, the increasing trend in return on total capital suggests that AGCO Corp. is efficiently utilizing its capital resources to generate profits for its stakeholders.
Peer comparison
Dec 31, 2023