Terex Corporation (TEX)

Debt-to-equity 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-equity ratio 0.00 0.37 0.65 0.60 1.27

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,832,000K
= 0.00

The debt-to-equity ratio of Terex Corporation has shown a declining trend over the past five years, indicating a strengthening financial position in terms of leverage. As of December 31, 2020, the ratio stood at 1.27, signifying higher reliance on debt to finance operations compared to equity. However, by December 31, 2024, the ratio had dropped significantly to 0.00, suggesting the company had no debt relative to equity, which may indicate a lower financial risk and improved solvency. Overall, the decreasing trend in the debt-to-equity ratio implies that Terex Corporation has been effectively managing its debt levels and improving its overall financial health over the specified period.