AGCO Corporation (AGCO)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,377,200 | 1,919,700 | 2,014,200 | 1,791,100 | 1,264,800 | 1,845,700 | 2,018,000 | 1,899,400 | 1,411,200 | 1,319,100 | 1,206,400 | 936,600 | 1,256,700 | 1,429,300 | 1,652,100 | 1,669,500 | 1,191,800 | 1,269,200 | 1,308,100 | 1,404,300 |
| Total stockholders’ equity | US$ in thousands | 4,656,700 | 4,355,500 | 4,138,800 | 4,132,700 | 3,882,400 | 3,520,400 | 3,383,200 | 3,674,800 | 3,415,900 | 3,168,800 | 3,138,300 | 3,086,500 | 2,980,000 | 2,809,700 | 2,676,100 | 2,642,100 | 2,853,800 | 2,976,600 | 3,064,700 | 2,955,700 |
| Debt-to-equity ratio | 0.30 | 0.44 | 0.49 | 0.43 | 0.33 | 0.52 | 0.60 | 0.52 | 0.41 | 0.42 | 0.38 | 0.30 | 0.42 | 0.51 | 0.62 | 0.63 | 0.42 | 0.43 | 0.43 | 0.48 |
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 shown fluctuations over the past eight quarters, ranging from 0.30 to 0.69. A lower debt-to-equity ratio indicates a lower level of financial risk and suggests that the company relies more on equity financing than debt. In Q4 2023, the debt-to-equity ratio decreased to 0.30, the lowest level in the observed period, indicating a stronger financial position with less reliance on debt.
However, there was a general upward trend in the ratio from Q4 2022 to Q2 2023, reaching a peak of 0.69 in Q2 2022. This increase suggests an increased proportion of debt in the company's capital structure relative to equity during that period.
Overall, fluctuations in the debt-to-equity ratio suggest varying levels of leverage and financial risk for AGCO Corp. It would be important to further investigate the reasons behind these fluctuations to assess the company's financing strategy and evaluate its ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023