Submitted by IncomeStatementGuy t3_114ib6y in dataisbeautiful
Comments
IncomeStatementGuy OP t1_j8wfxuf wrote
Haven’t looked for that in their annual report.
How much % do you think it is roughly?
tukachinchilla t1_j8zmbka wrote
Dunno, but it's killing farmers used to working on their stuff on the cheap. Now they have to pay for service from a guy with a laptop
yaaaaayPancakes t1_j900w2y wrote
Yeah, how much is just in software licenses? It's kind of nuts.
anonkitty2 t1_j93s9y0 wrote
The service schemes would be under "financial products.". Accessories and parts would go under the categories of the vehicles they are accessories and parts for. Toys and clothes would be under "other."
IncomeStatementGuy OP t1_j8w6zcb wrote
Data source: Their 2022 annual report
Tools used: SankeyArt (I am developing this tool)
General_Armadillo_29 t1_j8wbb9t wrote
Cool presentation, garbage company that treats farmers so poorly it’s insane though.
IncomeStatementGuy OP t1_j8wfosj wrote
Thanks! How do they treat farmers? Farmers are their customers so they should be their kings 🤌
cmde44 t1_j8wgvhq wrote
You know how you can't replace anything broken on your iPhone anywhere unless it's through an Apple store and it's performed by an Apple tech and costs an arm and a leg? John Deere does the same thing.
What used to be simple / or more basic maintenance work that a farmer could perform on their own is now not possible due to programming and must be performed by the dealership. This is an expense small farms can't take on and have been fighting for quite a while now.
U.S. Congress has been playing around with "right to repair" bills for years now; I believe on was just passed recently in regards to Deere, but it wasn't enough.
abubuwu t1_j8wthso wrote
You lose your phone for a few days it's inconvenient but not a big deal.
You can't use a tractor for days to potentially weeks at a time and you can end up losing an entire crop field, that's the type of stuff that can literally lead to bankruptcy.
You don't own a JD tractor but "the vehicle owner receives an implied license for the life of the vehicle to operate the vehicle, subject to any warranty limitations, disclaimers or other contractual limitations in the sales contract or documentation"
https://copyright.gov/1201/2015/comments-032715/class%2021/John_Deere_Class21_1201_2014.pdf
IncomeStatementGuy OP t1_j8wii81 wrote
Oh wow, that sucks! Are they mostly selling yearly maintenance contracts or is it pay as you have an incidence?
cmde44 t1_j8wjquv wrote
Nope! They just put the diagnostic equipment behind programming paywalls that's only accessible to JD techs. Even if you could diagnose the problem without hooking to the machine electronically, you wouldn't be able to reprogram or finalize the fix once it was completed.
All of this was to make sure John Deere made the money on repairs using their techs and their parts. My company uses older series JD tractors (80's and 90's) and they are very easy to work on and not very electronic component heavy. A fuel pump goes out, we know what that looks like and we just fix it ourselves. Something simple like this might cost me $2,000 to do on my own but would cost $5,000 to have done by the dealership (these aren't real numbers of course).
IncomeStatementGuy OP t1_j8wk4pq wrote
Wow... that just sounds like a stupid business practice that disgruntles their customers.
Wise_Mongoose_3930 t1_j8x577h wrote
They're taking advantage of their market dominance, but it's certainly a risky play that has lost them tons of goodwill.
PatersBier t1_j8zvvo7 wrote
Thanks, great tool.
RickJWagner t1_j8zl0tj wrote
Cool! What do you call this kind of depiction?
IncomeStatementGuy OP t1_j90dvz1 wrote
This is a Sankey diagram of an income statement
SlayerOfDougs t1_j8w7ec1 wrote
Yet their employees had to strike
IncomeStatementGuy OP t1_j8w7m2m wrote
Didn't know. For more pay?
SlayerOfDougs t1_j8w84vw wrote
That , but mostly John Deere wanted to remove the pension for new hires. The old guard stood up and say no partially because they were screwed by the previous old guard in reduced pensions.
Seeing that they netted 7 billion, it appears the workers were right
IncomeStatementGuy OP t1_j8w920c wrote
Old guard fighting for new hires. Nice.
slimetraveler t1_j8x0low wrote
Where do their residential tractors fit in? I figured they were a small part but they are probably what is most recognizable about the company.
Also I've heard some some grumbling from farmers about not being able to do basic repairs themselves and service contracts being kindof forced on them as subscription services. Would that fall under financial products?
Chupacabras7 t1_j8yi2ab wrote
Is there one for CAT?? Couldn’t find one using the search bar
IncomeStatementGuy OP t1_j8ymu1w wrote
Not yet, but I‘ll create one for you, Mr. Chupacabras. Are they releasing earnings soon?
Chupacabras7 t1_j8yol0c wrote
Thanks!! I have no idea when they are releasing but will try to have an answer for you.
Edit: They reported Q4 earnings already.
Immarhinocerous t1_j8z95iz wrote
I wish this showed margins on each product channel.
Zhydrac t1_j9078v1 wrote
Fun fact: they even make off-road UTVs
[deleted] t1_j8y7wie wrote
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[deleted] t1_j90cx38 wrote
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jordtand t1_j90hif3 wrote
2B$ to research new ways of fucking over farmers
Desmag t1_j90ruzw wrote
Cost of sales? Or wine and dine?
Feerlez_Leeder101 t1_j912ql4 wrote
Well... How John Deere makes 75% of its money I guess. Not really sure what "other" would be.
DarkNikolas t1_j9afgmg wrote
Plz show Sankey source / template in Python for this diagram 🙄
IncomeStatementGuy OP t1_j9akiyz wrote
It’s created with SankeyArt, a web app I develop.
DarkNikolas t1_j9akyst wrote
Yea , bat can you show source code from sankey diagram ?
IncomeStatementGuy OP t1_j9ao0tf wrote
You mean the flows I defined in the Spreadsheet? Sure, I could share these. Or do you mean something different sandpit mentioned Python?
DarkNikolas t1_j9aomj4 wrote
Yea , I mean Python sankey diagram source 🫣
IncomeStatementGuy OP t1_j9aq7r6 wrote
There is no Python source code. The Sankey diagram is created with the SankeyArt web application. Its front end is mainly JavaScript, not Python.
DarkNikolas t1_j9fot46 wrote
Where do you get the data on what services and sales consist of revenue ?
IncomeStatementGuy OP t1_j9fqcqx wrote
It’s in the official earnings report
dan_bodine t1_j8z9446 wrote
It should be Gross income not profit.
bryan_jenkins t1_j907c23 wrote
Nope. Gross income would be "revenue", one to the left.
BurnTheOrange t1_j8zqmf0 wrote
Where's the line item for fucking up right to repair and charging farmers with broken equipment exorbitant fees while their crops rot?
SociologySaves t1_j8y1nsw wrote
And anti union. Exploit cheap labor. Amerikkka.
Ngfeigo14 t1_j8z7298 wrote
What does that have to do with it?
"Amerikkka"????
SenecatheEldest t1_j9cwr1h wrote
They replaced the 'c' in America with the KKK. Because that's at all relevant to John Deere.
SociologySaves t1_j904q5a wrote
It’s has to do with stolen surplus value. All value is produced by workers. John Deere exploits workers. Anti union. Bad for labor. Abusive. Profit stealing
Ngfeigo14 t1_j906pye wrote
Hm, interesting
tukachinchilla t1_j8wa7un wrote
Wonder how much of that profit is from their proprietary accessories, parts and service schemes.