Trimble Inc (TRMB)

Solvency ratios

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
Debt-to-assets ratio 0.27 0.32 0.33 0.22 0.17 0.18 0.14 0.00 0.18 0.00 0.00 0.00 0.19 0.00 0.24 0.25 0.24 0.26 0.26 0.28
Debt-to-capital ratio 0.36 0.41 0.42 0.30 0.23 0.24 0.20 0.00 0.25 0.00 0.00 0.00 0.26 0.00 0.33 0.35 0.34 0.35 0.35 0.38
Debt-to-equity ratio 0.56 0.69 0.74 0.42 0.30 0.32 0.26 0.00 0.33 0.00 0.00 0.00 0.36 0.00 0.49 0.55 0.52 0.54 0.54 0.60
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

Trimble Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable over the periods, ranging from 0.14 to 0.33, with a decreasing trend in recent quarters. This ratio suggests that around 14% to 33% of the company's total assets are financed by debt.

The debt-to-capital ratio has also shown a similar trend, fluctuating between 0.20 and 0.42, indicating that debt comprises around 20% to 42% of the company's total capital structure. The decreasing trend in recent periods implies that Trimble is relying less on debt financing.

The debt-to-equity ratio demonstrates the proportion of debt to shareholders' equity. Trimble's ratio has ranged from 0.26 to 0.74, indicating that debt has accounted for 26% to 74% of the company's equity over the periods. The decreasing trend in recent quarters suggests a lower reliance on debt compared to equity.

The financial leverage ratio reflects the company's total assets' financing by debt compared to equity. Trimble has maintained this ratio between 1.78 and 2.21, showing that, on average, the company has around 1.78 to 2.21 times more debt than equity. The ratio has varied over time, indicating changes in the capital structure and leverage position of the company. Overall, the trend in the solvency ratios suggests a prudent approach to managing debt and maintaining a healthy balance between debt and equity financing.

Coverage ratios

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
Interest coverage 2.79 3.26 4.23 6.56 7.19 8.62 8.97 8.95 8.58 8.25 7.18 6.25 5.41 4.83 4.70 4.79 4.56 4.46 4.14 4.00

Trimble Inc's interest coverage ratio has shown a generally positive trend over the past five years, indicating the company's ability to cover its interest expenses with operating income. The ratio has improved from 4.00 at the end of 2019 to 2.79 at the end of 2023, signaling a stronger ability to meet interest obligations.

The company's interest coverage ratio peaked at 8.97 in the second quarter of 2022 and has since fluctuated but remained above 4.00, demonstrating a consistent ability to handle interest payments. This suggests that Trimble Inc has a healthy level of earnings relative to its interest expenses, providing a cushion against potential fluctuations in operating performance.

Overall, the upward trend in Trimble Inc's interest coverage ratio indicates that the company has been effectively managing its interest obligations and generating sufficient income to comfortably cover its interest expenses. This can be viewed positively by investors and creditors as it signifies the company's financial stability and ability to meet its debt obligations.