Adient PLC (ADNT)
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,285,000 | 2,228,000 | 2,174,000 | 2,197,000 | 2,192,000 | 2,073,000 | 2,123,000 | 2,285,000 | 2,344,000 | 2,376,000 | 1,467,000 | 1,489,000 | 1,452,000 | 1,213,000 | 1,250,000 | 1,541,000 | 1,743,000 | 1,848,000 | 1,919,000 | 2,257,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,285,000K
= 0.00
The debt-to-equity ratio of Adient plc has been fluctuating over the past eight quarters, ranging from 1.11 to 1.28. The trend shows an initial decrease from Q1 2023 to Q4 2023, followed by a slight increase in Q1 2024. This suggests that the company has been managing its debt and equity structure differently over time.
A debt-to-equity ratio above 1 indicates that Adient plc relies more on debt financing than equity financing to fund its operations and growth. A ratio of 1.11 in Q1 2024 means that the company had $1.11 in debt for every $1 of equity. This ratio increased gradually to a peak of 1.28 in Q3 and Q4 2022, indicating a higher level of indebtedness relative to shareholder equity during that period.
Changes in the debt-to-equity ratio can provide insights into the financial health and risk profile of the company. Higher ratios may signal increased financial leverage and potential risk for the company, as it indicates a higher proportion of debt in its capital structure. Conversely, lower ratios suggest a more conservative financing approach and may indicate less financial risk.
Overall, Adient plc's debt-to-equity ratio has shown variability over the quarters, reflecting changing levels of debt and equity within the company's capital structure. Further analysis and comparison with industry peers may provide a better understanding of the company's financial position and performance.
Peer comparison
Dec 31, 2023