AGCO Corporation (AGCO)

Solvency ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Debt-to-assets ratio	0.20	0.27	0.26	0.25	0.12	0.17	0.18	0.17	0.13	0.19	0.20	0.19	0.15	0.15	0.14	0.11	0.15	0.18	0.21	0.22
Debt-to-capital ratio	0.37	0.47	0.47	0.42	0.23	0.31	0.33	0.30	0.25	0.34	0.37	0.34	0.29	0.29	0.28	0.23	0.30	0.34	0.38	0.39
Debt-to-equity ratio	0.60	0.87	0.89	0.72	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
Financial leverage ratio	2.99	3.26	3.36	2.83	2.45	2.61	2.75	2.62	2.60	2.79	2.92	2.69	2.69	2.82	2.82	2.69	2.85	2.83	2.91	2.92

AGCO Corporation's solvency ratios indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio shows the proportion of AGCO's total assets financed by debt. The ratio has generally decreased from 0.22 in March 2020 to 0.20 in June 2024. A lower ratio suggests the company relies less on debt to finance its assets.

2. Debt-to-capital ratio: This ratio measures the percentage of AGCO's capital that is funded by debt. The ratio fluctuates but shows a decreasing trend overall, from 0.39 in March 2020 to 0.37 in June 2024. This indicates the company's decreasing reliance on debt in its capital structure.

3. Debt-to-equity ratio: This ratio reflects the proportion of AGCO's financing that comes from debt compared to equity. The ratio has fluctuated but generally decreased from 0.63 in March 2020 to 0.89 in June 2024. A higher ratio can indicate higher financial risk, but the recent increase suggests increased leverage.

4. Financial leverage ratio: This ratio shows the extent to which AGCO uses debt to finance its assets. The ratio has varied but shows an increasing trend, from 2.83 in September 2020 to 3.36 in June 2024. A higher ratio indicates higher financial risk and dependency on debt financing.

Overall, AGCO Corporation's solvency ratios suggest a mixed picture. While the company has reduced its reliance on debt in certain ratios, the increasing trend in the financial leverage ratio indicates a higher level of financial risk and debt dependency in recent years. It is important for investors and stakeholders to monitor these ratios to assess the company's long-term financial health and stability.

Coverage ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Interest coverage	-1.31	7.40	19.07	77.78	89.49	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

AGCO Corporation's interest coverage ratio, which indicates the company's ability to meet interest payments on its debt, has shown fluctuations over the periods provided.

From March 31, 2020, to September 30, 2021, the interest coverage ratio ranged from 7.34 to 105.22, reflecting varying levels of financial stability. Notably, the ratio significantly improved in the latter part of 2021, reaching its peak at 129.35 on June 30, 2023.

However, there was a decline in the ratio in the subsequent periods, dropping to 19.07 on June 30, 2024, and even turning negative at -1.31 on December 31, 2024. This indicates a potential risk as the company may be struggling to cover its interest expenses with its operating income during those periods.

Overall, monitoring AGCO Corporation's interest coverage ratio is essential for assessing its ability to meet its debt obligations and sustain financial health over time.