Deere & Company (DE) Bundle
Understanding Deere & Company (DE) Revenue Streams
Revenue Analysis
The company's financial performance reveals robust revenue generation across multiple business segments. For the fiscal year 2023, total revenue reached $52.4 billion, representing a 16.3% increase from the previous year.
Business Segment | Revenue ($B) | Percentage of Total Revenue |
---|---|---|
Agricultural Equipment | 31.2 | 59.5% |
Construction Equipment | 12.6 | 24.0% |
Financial Services | 6.9 | 13.2% |
Other | 1.7 | 3.3% |
Revenue Geographical Distribution
- United States and Canada: $34.8 billion (66.4%)
- Europe: $7.5 billion (14.3%)
- Asia Pacific: $5.2 billion (9.9%)
- Latin America: $3.6 billion (6.9%)
- Other Regions: $1.3 billion (2.5%)
Revenue Growth Trends
Fiscal Year | Total Revenue | Year-over-Year Growth |
---|---|---|
2021 | $44.0 billion | 7.8% |
2022 | $52.4 billion | 16.3% |
2023 | $60.1 billion | 14.7% |
A Deep Dive into Deere & Company (DE) Profitability
Profitability Metrics Analysis
For the fiscal year 2023, the company reported key profitability metrics as follows:
Profitability Metric | Value |
---|---|
Gross Profit Margin | 24.8% |
Operating Profit Margin | 16.5% |
Net Profit Margin | 13.2% |
Return on Equity (ROE) | 46.3% |
Return on Assets (ROA) | 12.7% |
Profitability performance highlights include:
- Net income for 2023: $8.46 billion
- Revenue: $52.4 billion
- Operating income: $8.66 billion
Operational efficiency metrics reveal:
- Cost of goods sold: $39.48 billion
- Selling, general, and administrative expenses: $4.23 billion
- Research and development expenses: $1.67 billion
Profit Comparison | 2022 | 2023 |
---|---|---|
Gross Profit | $15.2 billion | $13.9 billion |
Operating Income | $9.2 billion | $8.66 billion |
Net Income | $9.8 billion | $8.46 billion |
Debt vs. Equity: How Deere & Company (DE) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, Deere & Company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
Total Long-Term Debt: $24.8 billion Total Short-Term Debt: $12.3 billion
Debt Metric | Amount |
---|---|
Total Debt | $37.1 billion |
Debt-to-Equity Ratio | 1.65 |
Interest Expense | $1.2 billion |
Credit Ratings
- Standard & Poor's Rating: A-
- Moody's Rating: A2
- Fitch Rating: A
Equity Composition
Total Shareholders' Equity: $22.5 billion
Equity Component | Value |
---|---|
Common Stock | $1.2 billion |
Retained Earnings | $18.7 billion |
Financing Strategy
- Debt Financing Percentage: 62%
- Equity Financing Percentage: 38%
- Average Debt Maturity: 7.3 years
Assessing Deere & Company (DE) Liquidity
Liquidity and Solvency Analysis
Examining the company's liquidity reveals critical financial metrics for investors:
Liquidity Ratios
Liquidity Metric | 2023 Value | 2022 Value |
---|---|---|
Current Ratio | 1.84 | 1.72 |
Quick Ratio | 1.21 | 1.15 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- Total Working Capital: $8.2 billion
- Year-over-Year Working Capital Change: +7.3%
- Net Working Capital Turnover: 3.6x
Cash Flow Statement Overview
Cash Flow Category | 2023 Amount |
---|---|
Operating Cash Flow | $6.45 billion |
Investing Cash Flow | -$2.1 billion |
Financing Cash Flow | -$3.2 billion |
Liquidity Strengths
- Cash and Cash Equivalents: $3.8 billion
- Available Credit Facilities: $5.6 billion
- Short-Term Investments: $1.2 billion
Debt Solvency Metrics
Solvency Indicator | 2023 Value |
---|---|
Debt-to-Equity Ratio | 1.45 |
Interest Coverage Ratio | 8.2x |
Is Deere & Company (DE) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis reveals critical insights into the current market positioning of the company's stock.
Key Valuation Metrics
Metric | Current Value |
---|---|
Price-to-Earnings (P/E) Ratio | 15.3 |
Price-to-Book (P/B) Ratio | 3.7 |
Enterprise Value/EBITDA | 12.6 |
Dividend Yield | 1.8% |
Stock Price Performance
Stock price performance over the past 12 months:
- 52-week low: $311.54
- 52-week high: $453.27
- Current price: $387.92
- Year-to-date performance: +14.6%
Analyst Recommendations
Recommendation | Number of Analysts | Percentage |
---|---|---|
Buy | 12 | 48% |
Hold | 10 | 40% |
Sell | 3 | 12% |
Dividend Analysis
Dividend-related metrics:
- Annual Dividend: $4.52 per share
- Dividend Payout Ratio: 32.7%
- Dividend Growth Rate (5-year): 6.3%
Key Risks Facing Deere & Company (DE)
Risk Factors
The company faces multiple critical risk factors across various operational and financial dimensions:
Market and Industry Risks
Risk Category | Specific Risk | Potential Impact |
---|---|---|
Agricultural Market | Commodity Price Volatility | Revenue Fluctuation of ±15% |
Global Trade | International Tariff Changes | Potential Cost Increase of 7.2% |
Economic Conditions | Farm Income Uncertainty | Equipment Sales Sensitivity ±10% |
Financial Risk Exposure
- Credit Risk: $2.3 billion in financial services receivables
- Interest Rate Sensitivity: ±3.5% potential earnings impact
- Currency Exchange Risk: $600 million annual international revenue exposure
Operational Challenges
Key operational risks include:
- Supply Chain Disruptions: Potential 12% production delay risk
- Technology Integration Costs: $450 million annual investment
- Regulatory Compliance Expenses: Estimated $180 million annual expenditure
Strategic Risk Mitigation
Mitigation Strategy | Investment | Expected Outcome |
---|---|---|
Digital Technology Development | $350 million | Operational Efficiency Improvement |
Diversification Initiatives | $250 million | Revenue Stream Expansion |
Future Growth Prospects for Deere & Company (DE)
Growth Opportunities
The company is positioned for significant growth through strategic market expansions and technological innovations in agricultural and construction equipment sectors.
Key Growth Drivers
- Global agricultural technology market expected to reach $34.8 billion by 2026
- Precision agriculture technologies projected to grow at 12.7% CAGR through 2028
- Smart farming equipment market anticipated to expand to $15.3 billion by 2025
Revenue Growth Projections
Year | Projected Revenue | Growth Rate |
---|---|---|
2024 | $47.5 billion | 6.2% |
2025 | $50.3 billion | 5.9% |
2026 | $53.1 billion | 5.6% |
Strategic Initiatives
- Investment of $500 million in autonomous technology development
- Expansion into emerging markets with $250 million infrastructure investment
- Electric and hybrid equipment line expected to generate $1.2 billion in revenue by 2027
Competitive Advantages
Key technological advantages include:
- Advanced precision agriculture solutions
- Machine learning integration in equipment
- Global manufacturing network spanning 13 countries
Market Expansion Opportunities
Region | Market Potential | Growth Estimate |
---|---|---|
Asia-Pacific | $8.7 billion | 9.3% |
Latin America | $5.4 billion | 7.5% |
Africa | $3.2 billion | 6.8% |
Deere & Company (DE) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.