Trimble Inc (TRMB)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.65 | 2.12 | 1.79 | 1.80 | 1.91 |
Trimble Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been 0.00 from 2020 to 2024, signaling that the company has no significant debt obligations compared to its total assets, capital, and equity.
However, the Financial leverage ratio has shown some fluctuations over the years, with a peak of 2.12 in 2023 and a low of 1.65 in 2024. Despite the fluctuations, the Financial leverage ratio remains relatively low, suggesting that Trimble Inc's use of debt financing is prudent and manageable.
Overall, Trimble Inc's solvency ratios reflect a disciplined approach to managing debt and a strong financial foundation, which bodes well for the company's ability to meet its financial obligations and navigate any potential financial challenges in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.11 | 3.22 | 8.10 | 9.79 | 6.09 |
The interest coverage ratio for Trimble Inc has shown some fluctuations over the past five years. It stood at 6.09 in December 31, 2020, indicating that the company earned enough operating income to cover its interest expenses approximately 6 times. Over the following years, the ratio improved significantly to 9.79 in December 31, 2021, and then slightly decreased to 8.10 in December 31, 2022. However, there was a notable decline in the interest coverage ratio to 3.22 in December 31, 2023, suggesting that the company's ability to cover its interest expenses from operating income weakened substantially. Nevertheless, there was a slight recovery in the ratio to 5.11 in December 31, 2024. It is essential for Trimble Inc to closely monitor its interest coverage ratio to ensure it maintains a healthy level of earnings relative to its interest obligations.