Trimble Inc (TRMB)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,539,300 | 9,330,700 | 9,556,300 | 8,012,900 | 7,269,000 | 7,077,700 | 6,919,500 | 7,177,400 | 7,099,600 | 7,003,400 | 6,962,200 | 6,780,500 | 6,876,900 | 6,624,300 | 6,645,000 | 6,705,700 | 6,640,700 | 5,803,900 | 5,876,100 | 5,920,100 |
| Total stockholders’ equity | US$ in thousands | 4,500,100 | 4,343,000 | 4,331,300 | 4,245,200 | 4,050,200 | 3,844,800 | 3,894,500 | 3,987,900 | 3,944,700 | 3,881,800 | 3,838,600 | 3,673,600 | 3,596,900 | 3,350,000 | 3,211,900 | 3,101,300 | 3,119,000 | 2,786,800 | 2,824,000 | 2,741,700 |
| Financial leverage ratio | 2.12 | 2.15 | 2.21 | 1.89 | 1.79 | 1.84 | 1.78 | 1.80 | 1.80 | 1.80 | 1.81 | 1.85 | 1.91 | 1.98 | 2.07 | 2.16 | 2.13 | 2.08 | 2.08 | 2.16 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,539,300K ÷ $4,500,100K
= 2.12
Trimble Inc's financial leverage ratio has fluctuated over the past few quarters, ranging from 1.78 to 2.21. It indicates that the company has been using debt financing to support its operations and investments. The increasing trend in the financial leverage ratio suggests that Trimble has been taking on more debt relative to its equity, potentially to finance expansion or growth opportunities.
The ratios above 2 suggest that Trimble has a higher level of financial leverage, which could indicate higher financial risk due to the increased reliance on debt to fund its activities. A ratio of 2.21 at the end of June 2023 is towards the higher end of the observed range, indicating a significant proportion of debt in the capital structure.
Investors and stakeholders may closely monitor Trimble's financial leverage ratio to assess the company's ability to manage debt levels effectively and generate sufficient returns to cover interest expenses. Further analysis of Trimble's overall financial health and profitability would provide additional insights into the implications of the fluctuating financial leverage ratio.
Peer comparison
Dec 31, 2023