AGCO Corporation (AGCO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,421,200 | 10,103,700 | 9,182,100 | 8,504,200 | 7,759,700 |
| Total stockholders’ equity | US$ in thousands | 4,656,700 | 3,882,400 | 3,415,900 | 2,980,000 | 2,853,800 |
| Financial leverage ratio | 2.45 | 2.60 | 2.69 | 2.85 | 2.72 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,421,200K ÷ $4,656,700K
= 2.45
AGCO Corp.'s financial leverage ratio has shown a declining trend over the past five years, decreasing from 2.72 in 2019 to 2.45 in 2023. This indicates that the company's reliance on debt to finance its operations has been decreasing over time. A lower financial leverage ratio suggests a stronger equity position and lower financial risk for the company. This trend may indicate that AGCO Corp. has been making efforts to strengthen its financial position by reducing its debt levels relative to its equity. However, it is important to note that a higher financial leverage ratio is not necessarily negative, as it can also indicate efficient use of debt to generate higher returns for shareholders. Further analysis of the company's overall financial health and performance is necessary to fully understand the implications of its changing financial leverage ratio.
Peer comparison
Dec 31, 2023