Terex Corporation (TEX)

Solvency ratios

	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
Debt-to-assets ratio	0.00	0.20	0.22	0.24	0.25	0.28	0.28	0.25	0.23	0.29	0.29	0.33	0.38	0.40	0.41	0.43	0.37	0.37	0.37	0.40
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
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
Financial leverage ratio	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	3.43	3.65	4.19	4.67

The solvency ratios of Terex Corp. provide insights into the company's ability to meet its financial obligations and manage its debt levels effectively. The trends observed in the ratios over the past eight quarters indicate the company's evolving financial leverage and capital structure.

The Debt-to-assets ratio has shown a declining trend from 0.25 in Q4 2022 to 0.17 in Q4 2023, suggesting that Terex Corp. has reduced its reliance on debt financing in relation to its total assets.

The Debt-to-capital ratio and Debt-to-equity ratio have followed similar trends, both decreasing during the same period. This indicates that the company has been using less debt relative to its total capital and equity, respectively.

The Financial leverage ratio, which measures the extent of a company's financial leverage, has declined steadily from 2.64 in Q4 2022 to 2.16 in Q4 2023. This implies that Terex Corp. has been using less debt to finance its operations and has become less leveraged over time.

Overall, the declining trends in the solvency ratios of Terex Corp. suggest that the company has been managing its debt levels prudently and improving its financial stability by reducing its reliance on debt for financing its operations.

Coverage ratios

	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
Interest coverage	10.18	10.61	10.47	9.20	8.45	8.04	7.23	7.05	6.19	4.94	3.76	2.02	0.87	0.64	1.10	2.39	2.05	1.41	1.62	1.58

Interest coverage measures the company's ability to meet its interest obligations using its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

Looking at the trend in Terex Corp.'s interest coverage ratio over the past eight quarters, we can observe a generally increasing trend. The ratio has consistently improved from 7.48 in Q2 2022 to 11.43 in Q4 2023. This indicates that the company's operating income has been sufficient to cover its interest expenses, with a notable increase in its ability to cover interest payments.

The company's interest coverage ratio peaked in Q3 2023 at 11.73, indicating the highest level of ability to meet interest obligations over the period. Although there was a slight decrease in Q4 2023 to 11.43, the ratio remains at a healthy level, reflecting the company's strong operational performance.

Overall, Terex Corp. has shown a positive trend in its interest coverage ratio, demonstrating an improving ability to meet its interest obligations comfortably. This trend suggests that the company has been effectively managing its debt and generating sufficient operating income to cover its interest expenses.