AGCO Corporation (AGCO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 4,656,700 | 3,882,400 | 3,415,900 | 2,980,000 | 2,853,800 |
| Debt-to-capital ratio | 0.23 | 0.25 | 0.29 | 0.30 | 0.29 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,377,200K ÷ ($1,377,200K + $4,656,700K)
= 0.23
The debt-to-capital ratio of AGCO Corp. has exhibited a decreasing trend over the past five years, declining from 0.32 in 2019 to 0.23 in 2023. This indicates that the proportion of the company's capital structure funded by debt has been decreasing over time, suggesting a potentially stronger financial position and lower financial risk. A lower debt-to-capital ratio signifies that the company relies less on debt financing relative to its total capital, which can enhance financial stability and flexibility. The decreasing trend in this ratio is a positive indicator of AGCO Corp.'s ability to manage its debt obligations and maintain a healthy capital structure.
Peer comparison
Dec 31, 2023