Trimble Inc (TRMB)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 4,500,100 | 4,050,200 | 3,944,700 | 3,596,900 | 3,119,000 |
| Debt-to-capital ratio | 0.36 | 0.23 | 0.25 | 0.26 | 0.34 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,536,200K ÷ ($2,536,200K + $4,500,100K)
= 0.36
The debt-to-capital ratio of Trimble Inc has shown fluctuations over the past five years. The ratio was 0.36 at the end of 2023, reflecting an increase from the prior year. This suggests that the company relied more on debt financing relative to its total capital structure in 2023 compared to 2022. However, it is important to note that the ratio remains relatively moderate, indicating that a significant portion of the company's capital structure is still funded by equity.
Comparing the most recent ratio to earlier years, we observe that the ratio was lower in 2022, 2021, and 2020 at 0.23, 0.25, and 0.26 respectively. This implies that Trimble Inc had a lower proportion of debt in its capital structure in those years. In 2019, the ratio was higher at 0.34, signaling a higher reliance on debt relative to capital that year.
Overall, the trend in the debt-to-capital ratio suggests some variability in Trimble Inc's leverage position over the years, with the most recent data indicating a higher dependency on debt financing. Investors and stakeholders may want to monitor this ratio in conjunction with other financial metrics to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023