Alcoa Corp (AA)
Debt-to-equity 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,732,000 | 1,809,000 | 1,808,000 | 1,806,000 | 1,806,000 | 1,725,000 | 1,725,000 | 1,727,000 | 1,726,000 | 1,724,000 | 2,216,000 | 2,214,000 | 2,463,000 | 2,538,000 | 1,800,000 | 1,801,000 | 1,799,000 | 1,805,000 | 1,804,000 | 1,802,000 |
| Total stockholders’ equity | US$ in thousands | 4,251,000 | 4,509,000 | 4,842,000 | 4,690,000 | 5,076,000 | 5,371,000 | 5,666,000 | 4,579,000 | 4,672,000 | 3,878,000 | 3,769,000 | 3,248,000 | 3,311,000 | 3,395,000 | 3,705,000 | 4,275,000 | 4,112,000 | 4,539,000 | 4,895,000 | 5,157,000 |
| Debt-to-equity ratio | 0.41 | 0.40 | 0.37 | 0.39 | 0.36 | 0.32 | 0.30 | 0.38 | 0.37 | 0.44 | 0.59 | 0.68 | 0.74 | 0.75 | 0.49 | 0.42 | 0.44 | 0.40 | 0.37 | 0.35 |
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 shown a fluctuating trend over the past eight quarters. It increased from 0.32 in Q3 2022 to 0.43 in Q4 2023. This indicates that the company's level of debt relative to equity has been on the rise. However, it is essential to note that a debt-to-equity ratio of 0.43 is still considered moderate and may not necessarily raise immediate concerns about the company's financial leverage.
The ratio decreased gradually from Q4 2022 to Q2 2023, reaching a low of 0.30 in Q2 2022 before starting to climb again. This fluctuation suggests that Alcoa Corp has been actively managing its debt levels and equity structure during this period.
Overall, while the recent increase in the debt-to-equity ratio may warrant some attention, it is essential to consider the company's overall financial health, profitability, and growth prospects to make a comprehensive assessment of its financial stability and risk profile.
Peer comparison
Dec 31, 2023