AGCO Corporation (AGCO)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -122,100 | 539,800 | 848,600 | 1,586,700 | 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 |
| Long-term debt | US$ in thousands | 2,233,300 | 3,610,000 | 3,595,200 | 3,425,700 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,742,800 | 4,148,800 | 4,053,800 | 4,755,100 | 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 |
| Return on total capital | -2.04% | 6.96% | 11.09% | 19.40% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-122,100K ÷ ($2,233,300K + $3,742,800K)
= -2.04%
AGCO Corporation's return on total capital has varied over the period from March 31, 2020, to December 31, 2024. The return on total capital started at 8.26% in March 2020, declined to 5.86% in June 2020, and then fluctuated before showing a significant improvement to 14.15% in December 2020. Subsequently, the return continued to increase, reaching the highest point of 28.26% in September 30, 2023. However, the return on total capital decreased in the following periods, dropping to 19.40% in March 31, 2024 and significantly declining to -2.04% in December 31, 2024.
The fluctuation in AGCO Corporation's return on total capital suggests varying operational efficiency and asset utilization over the period. A higher return on total capital indicates that the company is generating more profits relative to the total capital employed, while a lower or negative return might signify inefficiencies in capital management or declining profitability. It is advisable for stakeholders to closely monitor this metric to understand the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024