Terex Corporation (TEX)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,730,000 | 3,781,000 | 3,779,500 | 3,759,900 | 3,615,000 | 3,461,100 | 3,415,200 | 3,281,200 | 3,118,100 | 2,976,500 | 2,993,700 | 2,939,900 | 2,863,500 | 3,067,900 | 3,068,500 | 2,965,500 | 3,031,800 | 2,915,200 | 2,864,300 | 3,114,700 |
| Total stockholders’ equity | US$ in thousands | 1,832,000 | 1,957,000 | 1,823,900 | 1,731,900 | 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 |
| Financial leverage ratio | 3.13 | 1.93 | 2.07 | 2.17 | 2.16 | 2.31 | 2.38 | 2.53 | 2.64 | 2.88 | 2.85 | 2.64 | 2.58 | 2.92 | 2.97 | 3.13 | 3.29 | 3.42 | 3.58 | 3.96 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,730,000K ÷ $1,832,000K
= 3.13
The financial leverage ratio of Terex Corporation has shown a declining trend over the years, indicating an improvement in the company's ability to meet its financial obligations using debt. From a high of 3.96 as of March 31, 2020, the ratio decreased to 1.93 as of September 30, 2024. This downward trend suggests the company has been gradually reducing its reliance on debt to finance its operations.
However, it is important to note that there was a significant increase in the ratio as of December 31, 2024, jumping back to 3.13. This sudden spike may indicate a recent shift in the company's capital structure, possibly due to strategic decisions or external factors impacting the business.
Overall, the decreasing trend in the financial leverage ratio of Terex Corporation until September 30, 2024, followed by a sudden increase, suggests fluctuations in the company's debt levels and capital structure that may need further investigation to understand the factors driving these changes.