Terex Corporation (TEX)

Solvency ratios

	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
Debt-to-assets ratio	0.00	0.17	0.18	0.19	0.17	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
Debt-to-capital ratio	0.00	0.24	0.27	0.29	0.27	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
Debt-to-equity ratio	0.00	0.32	0.36	0.42	0.37	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
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

The solvency ratios of Terex Corporation indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-Assets Ratio: This ratio shows the proportion of a company's assets that are financed by debt. Terex's debt-to-assets ratio has been declining steadily from 0.43 in March 2020 to 0.00 in December 2024. This indicates that the company has been lowering its reliance on debt financing in relation to its total assets over the years.

2. Debt-to-Capital Ratio: The debt-to-capital ratio reflects the extent of a company's capital structure that is funded by debt. Terex has also shown a decreasing trend in this ratio, starting at 0.63 in March 2020 and reaching 0.00 by December 2024. This implies that the company has been reducing its dependence on debt capital relative to its total capital.

3. Debt-to-Equity Ratio: The debt-to-equity ratio measures the proportion of a company's financing that comes from debt compared to equity. Terex's debt-to-equity ratio has exhibited a similar downward trajectory, declining from 1.70 in March 2020 to 0.00 by December 2024. This signifies that the company has been decreasing its debt relative to its equity, which can enhance its financial stability.

4. Financial Leverage Ratio: The financial leverage ratio indicates the company's level of borrowing in relation to its equity. Terex's financial leverage ratio decreased from 3.96 in March 2020 to 3.13 by December 2021 before fluctuating and then stabilizing at 3.13 in December 2024. This suggests that the company has managed its leverage effectively to maintain a balance between debt and equity financing.

Overall, the consistent decline in Terex Corporation's solvency ratios reflects a prudent approach towards managing its debt levels and enhancing its financial strength and stability over the years.

Coverage ratios

	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
Interest coverage	5.60	9.63	9.87	10.17	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

Terex Corporation's interest coverage ratio has shown fluctuations over the periods provided from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to meet its interest obligations on outstanding debt.

The trend in Terex Corporation's interest coverage ratio shows improvement from a low of 0.64 on September 30, 2020, to a high of 10.61 on September 30, 2023. This improvement suggests that the company's operating income was sufficient to cover its interest expenses comfortably during this period.

However, there was a slight decrease in the interest coverage ratio from March 31, 2024, to December 31, 2024, where the ratio declined from 10.17 to 5.60. This decline could be a cause for concern as it might indicate a potential strain on the company's ability to cover its interest payments with its operating income.

Overall, the upward trend in Terex Corporation's interest coverage ratio signals an improvement in the company's ability to handle its interest obligations, but the recent decrease poses a need for monitoring to ensure the sustainability of the company's financial health.