Terex Corporation (TEX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 773,600 | 668,500 | 1,166,200 | 1,168,800 |
| Total assets | US$ in thousands | 3,615,500 | 3,118,100 | 2,863,500 | 3,031,800 | 3,195,600 |
| Debt-to-assets ratio | 0.00 | 0.25 | 0.23 | 0.38 | 0.37 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $3,615,500K
= 0.00
The debt-to-assets ratio of Terex Corp. has shown a decreasing trend over the past five years, indicating a more favorable financial position in terms of leverage. In 2023, the ratio stands at 0.17, which is significantly lower than the ratios reported in the previous years (0.25 in 2022, 0.24 in 2021, 0.39 in 2020, and 0.37 in 2019).
A lower debt-to-assets ratio suggests that Terex Corp. has been able to reduce its dependence on debt to finance its assets, which can be interpreted positively by investors and creditors. This improvement may be attributed to effective debt management strategies, improved profitability, or prudent financial decision-making.
It is worth noting that a lower debt-to-assets ratio signifies that a larger portion of the company's assets are funded by equity rather than debt, potentially reducing financial risk and enhancing financial stability. Overall, the decreasing trend in Terex Corp.'s debt-to-assets ratio reflects a positive trajectory in its financial health and solvency over the past five years.