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.