AGCO (AGCO) Interest Coverage

: 6.95 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. AGCO's Operating Income for the three months ended in Dec. 2023 was $396 Mil. AGCO's Interest Expense for the three months ended in Dec. 2023 was $-57 Mil. AGCO's interest coverage for the quarter that ended in Dec. 2023 was 6.95. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for AGCO's Interest Coverage or its related term are showing as below:

AGCO' s Interest Coverage Range Over the Past 10 Years
Min: 4.62 Med: 14.19 Max: 40.03
Current: 24.95

AGCO's Interest Coverage is ranked better than
72.84% of 162 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.05 vs AGCO: 24.95

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

AGCO Interest Coverage Historical Data

The historical data trend for AGCO's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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AGCO Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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18.73

26.26

40.03

28.42

24.95

AGCO Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															12.44	780.40	86.81	77.53	6.95

Competitive Comparison

For the Farm & Heavy Construction Machinery subindustry, AGCO's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

AGCO Interest Coverage Distribution

For the Farm & Heavy Construction Machinery industry and Industrials sector, AGCO's Interest Coverage distribution charts can be found below:

* The bar in red indicates where AGCO's Interest Coverage falls into.

AGCO Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

AGCO's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, AGCO's Interest Expense was $-69 Mil. Its Operating Income was $1,716 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,512 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1716.4	/	-68.8
	=	24.95

AGCO's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, AGCO's Interest Expense was $-57 Mil. Its Operating Income was $396 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,512 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	396.3	/	-57
	=	6.95

The higher the ratio, the stronger the company's Financial Strength is.

AGCO (NYSE:AGCO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

AGCO Interest Coverage Related Terms

Thank you for viewing the detailed overview of AGCO's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

AGCO (AGCO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » AGCO Corp (NYSE:AGCO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AGCO:Mexico AGJ:Germany AGJ:Germany AGJ:Germany

Address

4205 River Green Parkway, Duluth, GA, USA, 30096

Website

https://www.agcocorp.com

Agco is a global manufacturer of agricultural equipment. The company has five core brands: Fendt, Massey Ferguson, Challenger, Valtra, and GSI. Unlike its competitors, Agco's product line extends beyond self-propelled equipment and implements to grain handling systems and livestock management solutions. Its products are available through a global dealer network, which includes over 3,200 dealer and distribution locations. Agco offers retail and wholesale financing to customers through its joint venture with Rabobank, a European food- and agriculture-focused bank.

Executives

Dehner Torsten Rudolf Willi	officer: SVP Gen Mgr Europe Middle East	AGCO INTERNATIONAL GMBH, VICTOR VON BRUNS STRASSE 17, NEUHAUSEN AM RHEINFALL V8 CH 8212
Robert B Crain	officer: Sr VP Gen. Mgr. North America	AGCO CORPORATION, 4205 RIVER GREEN PARKWAY, DULUTH GA 30096-2584
Felli Luis Fernando Sartini	officer: SVP Gen Manager South America	AGCO AMERICA DO SUL, RUA JAMES JOULE, 92 - CONJ 161 BROOKLIN, SAO PAULO D5 04576-080
Lara Thrush Long	officer: VP, Chief Accounting Officer	AGCO CORPORATION, 4205 RIVER GREEN PARKWAY, DULUTH GA 30096
George E Minnich	director	4 WEST RED OAK LANE, WHITE PLAINS NY 10604
Timothy Millwood	officer: SVP Chief Supply Chain Officer	AGCO CORPORATION, 4205 RIVER GREEN PARKWAY, DULUTH GA 30096
Andrew H Beck	officer: Sr. VP and CFO
Damon J Audia	officer: SVP, Chief Financial Officer	525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219
David M. Sagehorn	director	2307 OREGON STREET, PO BOX 2566, OSHKOSH WI 54903-2566
Niels Porksen	director	4205 RIVER GREEN PARKWAY, DULUTH GA 30096
Hans Bernd Veltmaat	officer: Sr VP Manufacturing & Quality	AGCO GMBH, VICTOR VON BRUNS STRASSE 17, CH 8212 NEUHAUSEN V8 CH 8212
Gary L Collar	officer: SVP, General Manager, EAME	11975 S MAGNOLIA CIRCLE, ALPHARETTA GA 30005
Kelvin Eugene Bennett	officer: SVP, Engineering	AGCO INTERNATIONAL GMBH, VICTOR VON BRUNS STRASSE 17, NEUHAUSEN AM RHEINFALL V8 CH 8212
Ivory Marie Harris	officer: SVP Chief HR Officer	AGCO CORPORATION, 4205 RIVER GREEN PARKWAY, DULUTH GA 30096
Wolfgang Deml	director