Trimble Inc (TRMB)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,536,200 | 1,220,000 | 1,293,200 | 1,291,400 | 1,624,200 |
| Total assets | US$ in thousands | 9,539,300 | 7,269,000 | 7,099,600 | 6,876,900 | 6,640,700 |
| Debt-to-assets ratio | 0.27 | 0.17 | 0.18 | 0.19 | 0.24 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,536,200K ÷ $9,539,300K
= 0.27
The debt-to-assets ratio of Trimble Inc has shown fluctuations over the past five years. The ratio stood at 0.27 at the end of 2023, indicating that 27% of the company's assets were financed through debt. This represents an increase compared to the previous year, where the ratio was 0.17. It is also higher than the ratios recorded in 2021 (0.18), 2020 (0.19), and 2019 (0.24).
A higher debt-to-assets ratio may suggest a higher level of financial risk for the company, as it indicates a larger proportion of assets are funded by debt rather than equity. This could lead to higher interest payments and increased financial leverage, potentially impacting the company's overall financial stability.
It is important for stakeholders to closely monitor changes in Trimble Inc’s debt-to-assets ratio to assess the company's financial health and risk profile, as significant fluctuations in this ratio could have implications for the company's ability to meet its financial obligations and sustain its operations in the long run.
Peer comparison
Dec 31, 2023