AGCO Corporation (AGCO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,190,600 | 11,421,200 | 10,103,700 | 9,182,100 | 8,504,200 |
| Total stockholders’ equity | US$ in thousands | 3,742,800 | 4,656,700 | 3,882,400 | 3,415,900 | 2,980,000 |
| Financial leverage ratio | 2.99 | 2.45 | 2.60 | 2.69 | 2.85 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,190,600K ÷ $3,742,800K
= 2.99
The financial leverage ratio of AGCO Corporation has displayed a decreasing trend over the five-year period from 2020 to 2024. Starting at 2.85 in 2020, the ratio decreased consistently to 2.69 in 2021, further declining to 2.60 in 2022, and continuing to drop to 2.45 in 2023. However, in 2024, there was a noticeable increase in the ratio to 2.99.
Overall, the trend suggests that the company's reliance on debt compared to equity has fluctuated over the years, with a general downward trajectory followed by a sharp increase in the most recent year. It is important for stakeholders to closely monitor this ratio, as it indicates the level of financial risk associated with the company and its ability to meet its debt obligations.
Peer comparison
Dec 31, 2024