AGCO Corporation (AGCO)

Solvency ratios

	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
Debt-to-assets ratio	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	0.15	0.16	0.16	0.17
Debt-to-capital ratio	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	0.29	0.30	0.30	0.32
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
Financial leverage ratio	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	2.72	2.71	2.75	2.78

AGCO Corp.'s solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable over the past eight quarters, ranging from 0.12 to 0.24. This indicates that AGCO Corp. has maintained a conservative level of debt relative to its total assets.

The debt-to-capital and debt-to-equity ratios have shown more fluctuation, with the former ranging from 0.23 to 0.41 and the latter from 0.30 to 0.69 over the same period. These ratios suggest that AGCO Corp. has utilized varying levels of debt and equity to finance its operations, with a higher reliance on debt in some quarters compared to others.

The financial leverage ratio, which captures the relationship between total assets and equity, has ranged from 2.45 to 2.92. This indicates the extent to which AGCO Corp. is using debt to fund its assets relative to shareholder equity. Generally, a higher financial leverage ratio implies greater financial risk due to higher levels of debt financing.

Overall, AGCO Corp. has maintained a relatively conservative capital structure with a consistent debt level relative to total assets. However, the fluctuating debt-to-capital and debt-to-equity ratios suggest variations in the company's financing strategy over time. It is crucial for stakeholders to monitor these solvency ratios to assess AGCO Corp.'s long-term financial stability and risk profile.

Coverage ratios

	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
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

Interest coverage measures a company's ability to pay its interest expenses on outstanding debt, indicating its financial health and risk level. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.

AGCO Corp.'s interest coverage ratio fluctuated during the past eight quarters, ranging from a low of 105.51 in Q4 2022 to a high of 387.96 in Q4 2023. The ratio improved significantly from Q4 2022 to Q1 2023, indicating a stronger ability to cover interest payments during this period. However, the ratio decreased in Q2 and Q3 2023 before rebounding sharply in Q4 2023 to its highest level in the 8-quarter period.

Overall, AGCO Corp.'s interest coverage ratio has shown variability but generally remained at healthy levels, indicating a consistent ability to meet interest obligations. The company's ability to generate sufficient operating income to cover interest expenses has improved in the most recent quarter, which suggests positive financial stability and possibly lower financial risk for the company. Nevertheless, continued monitoring of interest coverage trends will be essential to assess AGCO Corp.'s ongoing financial health and risk management.