Trimble Inc (TRMB)
Debt-to-equity 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-equity ratio | 0.56 | 0.30 | 0.33 | 0.36 | 0.52 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,536,200K ÷ $4,500,100K
= 0.56
The debt-to-equity ratio of Trimble Inc has fluctuated over the past five years, indicating varying levels of debt relative to equity in the company's capital structure. In 2023, the ratio stands at 0.56, representing an increase from the previous year. This suggests that the company has increased its reliance on debt financing compared to equity.
Compared to 2022 and 2021, where the ratios were 0.30 and 0.33 respectively, the current ratio in 2023 indicates a higher proportion of debt in relation to equity. However, it is still lower than the ratios in 2020 (0.36) and 2019 (0.52).
The trend of decreasing ratios from 2019 to 2021 followed by an increase in 2023 might indicate a shift in the company's financing strategy. It's worth noting that a higher debt-to-equity ratio suggests higher financial leverage, which can amplify returns on equity but also increase financial risk. Further analysis of the company's overall financial health and long-term sustainability is recommended to better understand the implications of these changes in the debt-to-equity ratio.
Peer comparison
Dec 31, 2023