Advanced Energy Industries Inc (AEIS)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 895,679 | 353,262 | 372,733 | 304,546 | 321,527 |
| Total stockholders’ equity | US$ in thousands | 1,144,180 | 1,066,270 | 870,851 | 814,739 | 676,714 |
| Debt-to-capital ratio | 0.44 | 0.25 | 0.30 | 0.27 | 0.32 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $895,679K ÷ ($895,679K + $1,144,180K)
= 0.44
Based on the data provided, Advanced Energy Industries Inc.'s debt-to-capital ratio has shown fluctuations over the past five years.
In 2023, the debt-to-capital ratio increased to 0.44 from 0.26 in 2022, indicating a significant rise in the proportion of debt relative to the total capital employed by the company. This increase suggests that the company may have taken on more debt in the recent period, leading to a higher leverage ratio.
Comparing 2023 to the previous years, the debt-to-capital ratio was higher than in 2021 (0.31) and 2019 (0.33), but lower than in 2020 (0.28). This fluctuation in the ratio over the years indicates varying levels of debt utilization in relation to the total capital structure of the company.
The trend in the debt-to-capital ratio suggests that Advanced Energy Industries Inc. has experienced changes in its debt management strategy and capital structure over time. Further analysis of the company's financial health and debt obligations would be necessary to provide a complete assessment of its leverage position and financial stability.
Peer comparison
Dec 31, 2023