AGCO Corporation (AGCO)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,233,300 | 1,377,200 | 1,264,800 | 1,411,200 | 1,256,700 |
| Total assets | US$ in thousands | 11,190,600 | 11,421,200 | 10,103,700 | 9,182,100 | 8,504,200 |
| Debt-to-assets ratio | 0.20 | 0.12 | 0.13 | 0.15 | 0.15 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,233,300K ÷ $11,190,600K
= 0.20
AGCO Corporation's debt-to-assets ratio has remained relatively stable over the past five years, ranging from 0.12 to 0.20. A lower debt-to-assets ratio indicates a lower proportion of debt financing compared to total assets, suggesting that AGCO Corporation has a conservative capital structure with a strong asset base. However, the slight increase in the ratio to 0.20 in 2024 may indicate a higher reliance on debt financing relative to assets, which could potentially raise concerns about the company's financial leverage and repayment capabilities. Overall, AGCO Corporation's debt-to-assets ratio suggests a prudent approach to managing its capital structure, but monitoring changes in this ratio over time is essential to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2024