Terex Corporation (TEX)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,832,000 | 1,672,300 | 1,181,200 | 1,109,600 | 921,500 |
| Debt-to-capital ratio | 0.00 | 0.27 | 0.40 | 0.38 | 0.56 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,832,000K)
= 0.00
The debt-to-capital ratio of Terex Corporation has exhibited a decreasing trend over the last five years. Starting at 0.56 as of December 31, 2020, the ratio decreased to 0.38 by December 31, 2021, and further dropped to 0.40 by December 31, 2022. Subsequently, the ratio experienced a significant decrease to 0.27 by December 31, 2023. Notably, by the end of December 31, 2024, the debt-to-capital ratio of Terex Corporation reached 0.00, indicating a complete absence of debt in relation to its capital.
This trend suggests that Terex Corporation has been gradually reducing its reliance on debt to finance its operations and investments, which could potentially signal a stronger financial position and lower financial risk. It is essential to monitor this ratio in the future to assess the ongoing financial health and capital structure of the company.