Terex Corporation (TEX)
Debt-to-equity 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-equity ratio | 0.00 | 0.47 | 0.51 | 0.60 | 0.65 | 0.80 | 0.79 | 0.66 | 0.60 | 0.84 | 0.86 | 1.03 | 1.27 | 1.37 | 1.46 | 1.70 | 1.25 | 1.35 | 1.56 | 1.88 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,672,300K
= 0.00
The debt-to-equity ratio of Terex Corp. has been fluctuating over the past eight quarters, ranging from 0.37 to 0.80. A lower ratio indicates a lower level of debt relative to equity, suggesting a stronger financial position and less financial risk. Conversely, a higher ratio implies a higher level of debt compared to equity, which may raise concerns about financial stability and the company's ability to meet its financial obligations.
In the most recent quarter, Q4 2023, the debt-to-equity ratio stands at 0.37, signaling a relatively conservative capital structure with a lower reliance on debt financing. This indicates that the company has a sound financial position with a higher proportion of equity compared to debt.
On the other hand, in Q3 2022, Terex Corp. had a higher debt-to-equity ratio of 0.80, suggesting a higher level of leverage and potentially greater financial risk. However, this ratio has been gradually decreasing over the subsequent quarters, which may indicate efforts to reduce debt levels or increase equity to strengthen the company's financial position.
Overall, monitoring the trend of Terex Corp.'s debt-to-equity ratio is crucial for assessing its financial health and risk profile, as it reflects the company's capital structure and ability to manage its debt obligations in relation to equity.