AGCO Corporation (AGCO)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,377,200 | 1,264,800 | 1,411,200 | 1,256,700 | 1,191,800 |
| Total assets | US$ in thousands | 11,421,200 | 10,103,700 | 9,182,100 | 8,504,200 | 7,759,700 |
| Debt-to-assets ratio | 0.12 | 0.13 | 0.15 | 0.15 | 0.15 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,377,200K ÷ $11,421,200K
= 0.12
The debt-to-assets ratio of AGCO Corp. has been exhibiting a declining trend over the past five years. In 2023, the ratio stands at 0.12, indicating that for every dollar of assets, the company has $0.12 of debt. This decrease from 0.14 in 2022 suggests that AGCO has been effectively reducing its reliance on debt financing in relation to its total assets.
The decreasing trend in the debt-to-assets ratio may signify improved financial stability and reduced financial risk for AGCO Corp. A lower ratio implies that the company has a lower level of financial leverage and is less vulnerable to default on its debt obligations. It also suggests that a larger portion of the company's assets are funded by equity rather than debt, which can be viewed positively by investors and creditors.
AGCO's declining debt-to-assets ratio could be attributed to various factors such as improved profitability, efficient management of debt levels, or strategic decisions to prioritize equity financing. Overall, the trend in the debt-to-assets ratio reflects positively on AGCO Corp.'s financial health and its ability to manage its capital structure effectively.
Peer comparison
Dec 31, 2023