Terex Corporation (TEX)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 706,300 | 734,300 | 774,900 | 773,600 | 824,600 | 826,100 | 738,400 | 668,500 | 887,700 | 888,500 | 973,500 | 1,166,200 | 1,167,000 | 1,167,400 | 1,338,100 | 1,168,800 | 1,166,600 | 1,341,700 | 1,467,300 |
| Total stockholders’ equity | US$ in thousands | 1,672,300 | 1,496,200 | 1,432,200 | 1,294,600 | 1,181,200 | 1,034,700 | 1,048,900 | 1,114,100 | 1,109,600 | 1,050,700 | 1,033,900 | 946,100 | 921,500 | 852,700 | 800,400 | 786,200 | 932,300 | 866,300 | 860,100 | 781,800 |
| Debt-to-capital ratio | 0.00 | 0.32 | 0.34 | 0.37 | 0.40 | 0.44 | 0.44 | 0.40 | 0.38 | 0.46 | 0.46 | 0.51 | 0.56 | 0.58 | 0.59 | 0.63 | 0.56 | 0.57 | 0.61 | 0.65 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,672,300K)
= 0.00
The debt-to-capital ratio of Terex Corp. has shown a decreasing trend from Q4 2022 to Q4 2023, indicating a stronger financial position in terms of leverage. The ratio dropped from 0.40 in Q4 2022 to 0.27 in Q4 2023. This suggests that the company has been reducing its reliance on debt to finance its operations and investments relative to its total capital.
Although there were fluctuations in between, overall, the downward trend demonstrates an improvement in the company's debt management strategy. A lower debt-to-capital ratio implies a healthier balance sheet and lower financial risk for the company. It shows that Terex Corp. is gradually enhancing its capital structure by either paying down its debt, increasing its equity, or a combination of both.
By consistently reducing its debt-to-capital ratio over the quarters, Terex Corp. is likely enhancing its financial flexibility and resilience to economic challenges. Investors and stakeholders may view this trend positively as it indicates a more secure and stable financial position for the company.