AGCO Corporation (AGCO)
Debt-to-equity 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-equity ratio | 0.30 | 0.33 | 0.41 | 0.42 | 0.42 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,377,200K ÷ $4,656,700K
= 0.30
AGCO Corp.'s debt-to-equity ratio has been showing a decreasing trend over the past five years: from 0.47 in 2019 to 0.30 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments in relation to shareholders' equity. A lower debt-to-equity ratio generally suggests lower financial risk and can be viewed positively by investors and creditors. AGCO Corp.'s decreasing trend in this ratio implies a stronger financial position and potentially better ability to weather economic downturns or unexpected challenges. Overall, the declining debt-to-equity ratio of AGCO Corp. demonstrates a favorable trend in terms of its leverage and financial health.
Peer comparison
Dec 31, 2023