Alcoa Corp (AA)
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 | 1,732,000 | 1,806,000 | 1,726,000 | 2,463,000 | 1,799,000 |
| Total stockholders’ equity | US$ in thousands | 4,251,000 | 5,076,000 | 4,672,000 | 3,311,000 | 4,112,000 |
| Debt-to-equity ratio | 0.41 | 0.36 | 0.37 | 0.74 | 0.44 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,732,000K ÷ $4,251,000K
= 0.41
The debt-to-equity ratio of Alcoa Corp has fluctuated over the past five years, indicating varying levels of debt relative to equity in the company's capital structure.
In 2023, the debt-to-equity ratio increased to 0.43 from 0.36 in 2022, suggesting a higher proportion of debt used to finance the company's operations compared to the previous year. This could potentially indicate increased financial leverage and higher risk associated with debt obligations.
Comparing 2023 to earlier years, the ratio remains below the level seen in 2020 when it spiked to 0.74, reflecting a significant increase in debt relative to equity. This high ratio in 2020 could have been a result of increased borrowing or declining equity, which may have raised concerns about the company's financial health and ability to meet debt obligations.
The ratios observed in 2021 and 2019 were more aligned with the 2023 figure, indicating relatively stable levels of debt-to-equity within that period.
Overall, Alcoa Corp's debt-to-equity ratio has shown fluctuations, implying changes in the company's capital structure and financial risk profile. It is essential for stakeholders to monitor these ratios to assess the company's leverage and financial stability over time.
Peer comparison
Dec 31, 2023