AGCO Corporation (AGCO)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,700,400 | 1,773,100 | 1,681,600 | 1,448,700 | 1,265,400 | 1,063,600 | 983,400 | 1,010,200 | 1,001,400 | 915,400 | 887,500 | 694,500 | 599,700 | 371,900 | 253,800 | 356,100 | 348,100 | 557,000 | 562,400 | 530,900 |
| Interest expense (ttm) | US$ in thousands | 4,600 | 16,200 | 13,000 | 13,100 | 13,000 | 27,200 | 26,100 | 22,400 | 25,400 | 8,700 | 11,100 | 15,000 | 11,700 | 38,000 | 34,600 | 28,800 | 28,800 | 15,900 | 22,700 | 43,600 |
| Interest coverage | 369.65 | 109.45 | 129.35 | 110.59 | 97.34 | 39.10 | 37.68 | 45.10 | 39.43 | 105.22 | 79.95 | 46.30 | 51.26 | 9.79 | 7.34 | 12.36 | 12.09 | 35.03 | 24.78 | 12.18 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,700,400K ÷ $4,600K
= 369.65
AGCO Corp.'s interest coverage ratio has shown significant fluctuations over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income.
In Q4 2023, the interest coverage ratio was very high at 387.96, indicating that AGCO Corp. generated almost 388 times more operating income than needed to cover its interest expenses for that quarter. This could be a sign of robust financial health and a strong ability to service its debt.
However, this high ratio in Q4 2023 followed a downward trend from the previous three quarters, where the interest coverage ratio ranged from 105.51 to 116.23. These lower ratios suggest a decrease in the company's ability to cover its interest expenses during those periods.
On the other hand, the interest coverage ratios in Q3 and Q2 of 2022 were relatively high at 137.41 and 147.12, respectively, indicating a healthy ability to meet interest obligations during that time. The interest coverage was highest in Q1 2022 at 304.11, showing a strong performance in that quarter.
Overall, the fluctuations in AGCO Corp.'s interest coverage ratio indicate varying levels of financial strength and ability to service debt obligations over the past eight quarters. It is essential for investors and stakeholders to closely monitor these changes to assess the company's financial stability and risk levels.
Peer comparison
Dec 31, 2023