AGCO Corporation (AGCO)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 3,742,800 | 4,656,700 | 3,882,400 | 3,415,900 | 2,980,000 |
| Debt-to-equity ratio | 0.60 | 0.30 | 0.33 | 0.41 | 0.42 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,233,300K ÷ $3,742,800K
= 0.60
Based on the provided data, the debt-to-equity ratio of AGCO Corporation has shown a declining trend from 0.42 in 2020 to 0.30 in 2023, indicating favorable financial health and decreasing reliance on debt to finance its operations. However, there was a notable increase in the ratio to 0.60 in 2024, suggesting a potential increase in debt relative to equity during that period. It is important to further investigate the reasons behind this sudden change and its potential impact on the company's financial stability and strategic decisions. Overall, the fluctuation in the debt-to-equity ratio over the years highlights the importance of closely monitoring AGCO Corporation's capital structure and debt management strategies.
Peer comparison
Dec 31, 2024