Terex Corporation (TEX)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 620,000 | 773,600 | 668,500 | 1,166,200 |
| Total assets | US$ in thousands | 5,730,000 | 3,615,000 | 3,118,100 | 2,863,500 | 3,031,800 |
| Debt-to-assets ratio | 0.00 | 0.17 | 0.25 | 0.23 | 0.38 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $5,730,000K
= 0.00
The debt-to-assets ratio of Terex Corporation has exhibited a declining trend from 0.38 in December 31, 2020, to 0.00 as of December 31, 2024. This indicates a significant improvement in the company's financial position over the specified period, reflecting a lower reliance on debt to finance its assets. A decreasing debt-to-assets ratio is generally viewed positively by investors and creditors as it suggests a lower risk of financial distress and insolvency. Terex Corporation's decreasing trend in debt-to-assets ratio may indicate effective debt management strategies or successful efforts to strengthen its balance sheet.