AGCO Corporation (AGCO)

Solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt-to-assets ratio	0.12	0.13	0.15	0.15	0.15
Debt-to-capital ratio	0.23	0.25	0.29	0.30	0.29
Debt-to-equity ratio	0.30	0.33	0.41	0.42	0.42
Financial leverage ratio	2.45	2.60	2.69	2.85	2.72

AGCO Corp.'s solvency ratios have shown a generally improving trend over the past five years, indicating a stronger financial position in terms of debt management. The debt-to-assets ratio has decreased from 0.17 in 2019 to 0.12 in 2023, suggesting that the company has been able to reduce its reliance on debt to finance its assets.

Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited a decreasing trend over the same period, indicating that AGCO Corp. has been able to decrease its debt levels relative to its capital and equity. This improvement suggests a more conservative capital structure and a lower financial risk for the company.

The financial leverage ratio, which measures the extent to which a company is using debt to finance its assets, has also decreased from 2.72 in 2019 to 2.45 in 2023. This decline indicates that AGCO Corp. has been able to reduce its financial leverage, which is a positive sign for its overall solvency.

Overall, the downward trend in these solvency ratios suggests that AGCO Corp. has been effectively managing its debt levels and improving its financial stability over the years. The company appears to be in a better position to meet its financial obligations and sustain its operations in the long term.

Coverage ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest coverage	21.38	26.79	40.58	25.69	11.62

AGCO Corp.'s interest coverage ratio has been fluctuating over the past five years. The ratio's significant increase from 2019 to 2020 indicates an improvement in the company's ability to cover its interest obligations, followed by a further substantial enhancement in 2021. In 2022, there was a decrease in the ratio, but it remained above 100, reflecting a strong ability to meet interest payments. The sharp increase in 2023 to 387.96 suggests a notable increase in the company's ability to cover interest expenses, indicating a healthier financial position in terms of handling debt obligations. Overall, AGCO Corp.'s interest coverage ratios demonstrate a generally positive trend over the five-year period, reflecting improved financial stability and capability to manage interest payments.